TikTok Rumored To Launch New US App To Sidestep Ban As Trump Says ‘We Would Pretty Much Have A Deal’

In what could have implications for Meta Platforms, Inc. (META) and YouTube-parent Alphabet, Inc. (GOOGL) (GOOG), Chinese short-video app TikTok is reportedly eyeing the launch of a new version of itself in the U.S.

An Information report, citing two people with knowledge of the matter, said China’s ByteDance-owned TikTok is gearing up to unveil a U.S.-specific new app, internally dubbed ‘M2’ on Sept. 5.

The proposed plan envisions that U.S. users will eventually download the new app to continue using its service, but the new app will remain functional until March 2026.

TikTok has a Sept. 17 deadline for divesting its U.S. assets or face a potential ban in the country. 

The report comes on the heels of President Donald Trump signaling over the weekend a divestiture deal would soon be in place. 

While talking to reporters aboard Air Force One, Trump said, “I think we're gonna start Monday or Tuesday...talking to China, perhaps President Xi [Jinping] or one of his representatives, but we would pretty much have a deal,” a Reuters report said.

The president went on to add, “I'm not confident, but I think so. President Xi and I have a great relationship, and I think it's good for them. I think the deal is good for China and it's good for us.”

According to Statista, TikTok’s U.S. users numbered an estimated 107.8 million in 2025, with the app striking a chord with Gen Z and Millennials. It is often seen as a threat to Facebook Reels and YouTube shorts, copycat versions developed by Meta and Alphabet, respectively.

The Meta stock, which recently hit a record closing high of $738.09.  ended Thursday’s session at $719.01. Meanwhile, Alphabet stock has underperformed, having lost approximately 5% year-to-date, compared to Meta’s 23% gain.

The Communication Services Select Sector SPDR ETF Fund (XLC) is up 12% for the year.

The previous Biden administration enacted a law in April 2024 requiring TikTok to divest its U.S. assets to a domestic buyer or face a potential ban, citing security concerns. The ban, which was initially set to take effect on Jan. 19, was extended three times so that TikTok U.S. could broker a deal to sell itself.

Larry Ellison's Oracle Corp. (ORCL), Liberty Project, founded by former Los Angeles Dodgers owner Frank McCourt, Tesla CEO Elon Musk, YouTuber Mr. Beast, AppLovin (APP) and Amazon (AMZN) were among those interested in lapping up TikTok.

Trump said in a Fox News interview in late June, “We have a buyer for TikTok by the way,” adding that the suitors are “wealthy people,” “a group of wealthy people.”

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