China's ByteDance has agreed to divest its TikTok operations in the U.S., according to a Reuters report.
Under the agreement, Microsoft will take over the management of US user data. The deal allows another company, in addition to Microsoft, to operate TikTok in the United States.
This would allow the service to continue operating in the United States, avoiding the executive order threatened by President Trump.
Allegedly, ByteDance had already sought an agreement that would allow the company to maintain a minority stake in the company. Apparently, that plan was dropped recently after the White House rejected the proposal.
Under this new agreement, Microsoft will be charged with protecting the data of US-based users, and another US-based company would be allowed to operate TikTok.
It is not clear whether this agreement would be sufficient to allow TikTok to continue operating in the United States.
Microsoft and the White House did not respond to a request for comment.
This news comes hours after President Trump told reporters he would sign an executive order banning the Chinese-owned app from operating in the United States. In response, ByteDance published the following statement, which we initially report here:
"Our $ 1 billion breeder fund supports American breeders who are building livelihoods from our platform. TikTok US user data is stored in the USA, with strict controls on employee access."
"TikTok's biggest investors come from the US. We are committed to protecting the privacy and security of our users, while continuing to work to bring joy to families and meaningful careers for those who create on our platform," said a spokesman for the TikTok.