TikTok to Launch New US App on September 5 Ahead of Divestment Deadline

TikTok is reportedly developing a new version of its application for its 170 million U.S. users, with a planned launch date of September 5. This strategic move comes as the popular short-video platform faces a mandated sale of its U.S. operations by its Chinese parent company, ByteDance, due to national security concerns. The existing TikTok app is expected to remain functional until March 2026, providing a transition period for users.

The development follows a 2024 U.S. law requiring ByteDance to divest TikTok's American assets or face a ban within the country. President Donald Trump recently stated that the U.S. "pretty much" has a deal on the sale of the short-video app, though he noted that discussions with China are still required to finalize the agreement. The current divestment deadline, which has been extended multiple times, is set for September 17.

Internally code-named "M2," the new application aims to address long-standing data security concerns by operating under U.S. control, separate from ByteDance's direct oversight. Users will eventually need to download this new version to continue accessing the service, a highly unusual migration for an app with such a massive user base. This significant undertaking could alleviate some of the geopolitical tensions surrounding the platform's data handling.

A consortium of American investors is reportedly poised to acquire TikTok's U.S. operations, with ByteDance expected to retain a minority stake in the new entity. Oracle has been cited as a leading candidate to provide cloud infrastructure for the U.S.-based platform, continuing its existing role in storing U.S. user data. Previous attempts at a sale were complicated by China's reluctance to approve a deal, particularly amidst trade tariff disputes.

The success of this complex transition hinges on the finalization of the sale and crucial approval from Beijing. If the deal proceeds, it would allow TikTok to continue operating in the U.S., albeit under new ownership and a separate application, safeguarding its extensive user base and business ecosystem. Failure to reach an agreement could still result in a ban, impacting millions of users and businesses reliant on the platform for communication and commerce.