TikTok Sale Agreement Nears, Averting Potential US Ban
A potential sale of TikTok that would satisfy US national security concerns is reportedly close to fruition, despite the app remaining operational in the United States for all but one day since the divestiture-or-ban law took effect in January. The agreement would involve a new, separate version of the app, according to reports.
Despite ongoing scrutiny and legal challenges, TikTok has managed to navigate a complex regulatory landscape. The app’s continued operation underscores the difficulties in implementing a full ban, even with legislative pressure.
Oracle Secures Landmark Government Cloud Deal
The potential TikTok deal arrives alongside a significant win for Oracle. The Wall Street Journal reported today that the General Services Administration announced a new agreement with the tech giant, offering the entire US government a 75 percent discount on licensed software and providing unprecedented savings on cloud infrastructure. According to a company release, this represents “the first of its kind” arrangement, potentially reshaping federal IT spending.
“M2” App Launch Imminent, Original TikTok’s Future Uncertain
TikTok’s internal teams are actively developing a new version of the app, internally designated “M2,” as a successor to the current version, known internally as “M.” The new app is slated for release in app stores on September 5th. This development suggests a proactive strategy to address US concerns and maintain a presence in the crucial American market.
However, the path forward remains contingent on approval from the Chinese government, which is also engaged in separate trade negotiations with the US regarding tariffs. Any sale would require Beijing’s consent, adding another layer of complexity to the process.
Timeline for Transition: From App Stores to Full Shutdown
According to an unnamed source cited by The Information, the current timeline envisions the original TikTok app being removed from app stores as the new “M2” version launches. Full functionality of the original app is then expected to cease entirely by March 2026.
The situation is further complicated by a third, legally questionable extension issued by former President Trump last month, delaying a potential ban from US app stores. This extension is set to expire in mid-September, creating a critical window for finalizing a sale agreement. The future of TikTok in the US remains uncertain, but the latest developments suggest a potential resolution is within reach, albeit one fraught with geopolitical and legal hurdles.
