TikTok isn’t just getting a new owner–it’s getting a whole new app.
After receiving a third stay of ban from the Trump administration, TikTok appears to be on the verge of clinching a deal with a group of non-Chinese investors that includes Oracle, the software conglomerate that first surfaced as a potential owner in 2020.
As part of that deal, it’s introducing a new, U.S.-only version of the TikTok app this September, The Information reports. Dubbed “M2,” the app is intended to help assuage the U.S. government’s concerns about data security, people familiar with the matter said. TikTok will start nudging its ~170 million Stateside users to transfer to M2 Sept. 5, but will continue operating the original app until March 2026.
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This is giving us flashbacks to musical.ly, the competitor app TikTok bought in 2017; less than a year later, it shut down the musical.ly app and pushed people over to the TikTok app, instantly bulking TikTok’s user base. Except in this case, TikTok stands to potentially lose some users. Not everyone will cross the attention span/convenience friction boundary of transferring their login credentials to a new app; others may blink when the OG app finally shuts off, realize just how much time they’re spending there, and try for a detox.
Either way, the move-over will whittle TikTok’s user base somewhat–but not enough to affect it in the long run.
We’re not surprised current owner ByteDance went with this setup. After all, it already operates a single-region version of TikTok: Douyin, which was designed for users in mainland China. This is just Douyin for the U.S., and though at debut M2 will probably look pretty identical to M, over time TikTok U.S. might introduce region-locked features or even monetization that will make it a more distinct digital locale.
Speaking of ByteDance, while this deal will have it divest primary ownership, transferring control to Oracle et al., it won’t be completely uninvolved. The Information reports it will retain a minority stake, allowing it to continue profiting from U.S. operations.
According to Donald Trump, the deal is “pretty much” done–but to be sealed, it must have approval from the Chinese government. And we’re not sure if you’ve heard, but the Chinese government hasn’t been too happy with Trump’s administration of late. Still, it’s more likely than not that the deal will go through, bringing this long saga to a close.
Here’s a timeline of just the last few months:
- Dec. 2024: With TikTok’s ban looming, the incoming Trump admin asks for a delay
- Jan. 18, 2025: The TikTok app briefly goes offline with dramatic messaging, is removed from U.S. app stores
- Jan. 20: On his first day in office, Trump signs an executive order giving TikTok 75 additional days to find a U.S. owner
- Mid-February: TikTok returns to app stores
- March: Trump tariffs kick in, scuppering a potential deal
- June 17: Trump admin announces it will extend TikTok’s ban once again
- July 4: Trump tells reporters on Air Force One that a deal is close to being clinched
