TikTok is preparing a standalone version of its platform specifically for U.S. users as part of efforts to comply with federal law, which requires its Chinese parent, ByteDance, to divest its U.S. operations or face a nationwide ban, according to The Information.

The U.S.-specific version is slated to launch in American app stores by September 5, with the current version to be phased out entirely by March 2026 if a sale is completed. The move represents a strategic approach to preserving TikTok’s 170 million U.S. users while addressing legal and political pressures.

Buyer Known?

A consortium including Oracle Corp, Blackstone Inc, and venture capital firm Andreessen Horowitz has been identified as the prospective buyer for TikTok’s American operations, Bloomberg reports. This group aligns with President Donald Trump’s recent reference to “very wealthy people” preparing to purchase the platform.

The potential deal, which stalled in April amid U.S.-China trade tensions, would grant new outside investors a 50% stake in TikTok’s U.S. business. ByteDance’s existing American investors would retain approximately 30%, reducing the Chinese firm’s ownership to just under 20%—a structure designed to meet U.S. security law requirements.

Timeline and Administration Response

President Trump has granted three extensions to the law’s enforcement since returning to office in January, with the latest deadline set for September 17. The White House confirms discussions continue “at the highest level” with China.

TikTok briefly suspended U.S. operations around the initial January 19 deadline before Trump issued a stay. The company recently expressed appreciation for the administration’s approach, noting they are “working with Vice President Vance’s Office” on a resolution.

ByteDance continues to face challenges in valuing a business estimated to be worth between $20 billion and $150 billion, depending on the terms and technology included.