Since the law requiring TikTok to sell its US operations or face a ban took effect in January, the app has only gone dark in the country for one day. Now, there’s growing optimism that a deal could soon be reached. A new report suggests that an agreement for a sale — one that fits the requirements of the Protecting Americans from Foreign Adversary Controlled Applications Act — is almost finalised. This could allow TikTok to continue operating in the US without further disruption.
A new app is in the works as sales talks progress
According to The Information, TikTok staff are developing a fresh version of the app, codenamed M2, to replace the current version, which is internally referred to as M. The new app is expected to launch in app stores on September 5. The plan would see the existing TikTok app removed from app stores simultaneously, with full functionality coming to an end in March 2026.
This move is intended to meet legal demands while ensuring users continue to have access to TikTok’s popular platform. A source told The Information that this approach — phasing out the original app while launching the new one — is designed to comply with the current legislation without fully disappearing from the US market.
An ownership plan would reduce Chinese control
A central concern for US lawmakers has been TikTok’s Chinese ownership through its parent company, ByteDance. Under the proposed deal, TikTok would be sold to a group of investors with no links to China. The sales group reportedly includes a US-based tech company, Oracle. ByteDance would still hold a minority stake, but this structure is expected to meet the legal conditions imposed by the divest-or-ban law.
Approval from the Chinese government is still a hurdle. China’s regulatory authorities have not yet agreed to the sale, and trade tensions with the US — especially those left unresolved from the Trump administration — remain a factor.
Meanwhile, the Wall Street Journal reported that Oracle recently signed a unique agreement with the US federal government. The deal offers a 75% discount on licensed software and aims to give all federal agencies easier access to Oracle’s cloud infrastructure. This strengthens Oracle’s role as a trusted partner for the US government and could further improve its standing in the TikTok negotiations.
A looming deadline and potential app store removal
The new app launch comes at a crucial time. Former President Donald Trump, who played a key role in pushing for a TikTok ban, issued a third extension to delay the removal of the app from US stores. That extension is due to expire in mid-September. If the new app is successfully launched by early September, TikTok could avoid being kicked off app stores and continue serving its millions of American users without interruption.
With March 2026 marked as the date the current version of TikTok would shut down fully, time is ticking for all sides to reach a final agreement. For now, the app remains available, but with significant changes on the way, you may soon need to download a new version to continue using it.
