President Donald Trump says a deal has been struck with China to keep TikTok running in the United States.
Speaking before leaving the White House for a UK visit, Trump confirmed he would talk to President Xi on Friday.
TikTok, owned by Chinese company ByteDance, had been ordered to sell its US arm or face being shut down entirely.
The deadline for the ban, first announced in January, has now been extended again until 16 December, Trump confirmed.
The Wall Street Journal reports that under the deal, TikTok’s US business will be controlled by a new investor consortium.
Oracle, Silver Lake and venture capital firm Andreessen Horowitz are expected to play leading roles in the American entity.
The new company would see US investors holding roughly 80% of shares, with Americans dominating its board, reports suggest.
One board member would be directly appointed by the US government, according to details cited by the Wall Street Journal.
TikTok users in America would be moved to a new app, still in testing, using ByteDance’s recommendation technology under licence.
CNBC reports the deal could be finalised within 30 to 45 days, involving both existing and new investors.
Oracle is also expected to continue hosting TikTok servers in the US, a move aimed at easing security concerns.
Washington has long raised fears the app could share data with China, something ByteDance strongly denies.
China confirmed a framework deal but insisted national companies’ interests would not be sacrificed during negotiations.
The agreement marks a dramatic turnaround for Trump, who initially backed a full ban on TikTok in America.
