Platform

TikTok To ‘Go Dark’ In U.S. If China Rejects Sale Deal, Says Commerce Secretary Lutnick

Published on July 25, 2025

U.S. Commerce Secretary Howard Lutnick issued a stark warning on Thursday, July 24, that TikTok will cease operations in the United States if China refuses to approve a deal transferring control of the platform to American owners.

“We’ve made the decision. You can’t have Chinese control and have something on 100 million American phones,” Lutnick told CNBC. “If that deal gets approved by the Chinese, then that deal will happen. If they don’t approve it, then TikTok is going to go dark.”

The Commerce Secretary emphasized that any agreement must include American ownership of the technology and control of the algorithm that powers the platform used by approximately 170 million Americans.

President Donald Trump extended the deadline for ByteDance to divest TikTok’s U.S. assets to September 17, marking the third extension since taking office in January. The original deadline mandated by Congress in 2024 required a sale or shutdown by January 19, 2025.

“Basically, Americans will have control. Americans will own the technology. Americans will control the algorithm. That’s something Donald Trump is willing to do,” Lutnick stated.

Consortium Composition Changes

A consortium led by ByteDance’s existing U.S. investors remains the front-runner to secure TikTok’s American operations. Oracle Corp and venture capital firm Andreessen Horowitz continue as part of the investor group, though private equity firm Blackstone recently withdrew from the bid.

The potential deal structure would grant U.S. investors 80% ownership while ByteDance retains a minority stake under 20%, designed to meet U.S. security law requirements.

U.S.-Specific App in Development

TikTok is reportedly preparing a standalone version specifically for U.S. users, scheduled to launch in American app stores by September 5. The current version would be phased out entirely by March 2026 if a sale is completed.

The deal, which stalled in April amid U.S.-China trade tensions, has become intertwined with broader trade negotiations between the two countries. The White House confirms discussions continue “at the highest level” with China as the September deadline approaches.