According to Deadline, TikTok is building a new version of its platform for United States users ahead of a planned sale to American investors. The Chinese-owned social media company plans to launch this new app version on September 5, 2025, in US app stores. Reuters confirmed the development, citing The Information's report based on unnamed sources.

ByteDance, TikTok's parent company, will shut down the current platform by March 2026. Users will eventually need to download the new app to continue accessing the service, though the existing version will function until next March. President Donald Trump announced last week that wealthy investors are preparing to purchase the popular short-form video platform. Trump plans to reveal the investors' identities within the coming weeks and extend the current deadline from September 17 to allow deal completion.

The announcement follows Trump's third extension of the divestment deadline, with the president indicating the United States has nearly finalized a deal. Chinese government approval remains necessary for any sale, as ByteDance operates under Chinese law requiring state consent for such transactions.

Why This Development Matters

The new app version addresses longstanding national security concerns that prompted Congress to pass the Protecting Americans from Foreign Adversary Controlled Applications Act in April 2024. The legislation requires ByteDance to divest TikTok's US operations or face a nationwide ban. Sprout Social reports that 58% of American consumers maintain TikTok profiles, with the platform serving 170 million US users who generate significant engagement and commerce activity.

The app's potential removal would eliminate access for these millions of users while disrupting thousands of businesses that rely on TikTok for marketing and sales. Small businesses and content creators have built substantial income streams through the platform's monetization features. The new version aims to preserve this ecosystem while addressing government concerns about data security and Chinese influence.

The timing proves essential, as TikTok faces mounting pressure from lawmakers and national security officials. The September launch date provides a buffer before the current deadline expires, allowing smooth transition for users and businesses dependent on the platform.

Industry and Market Impact

TikTok's sale represents a major shift in social media ownership and could reshape the competitive landscape. eMarketer reports that TikTok Shop drove significant social commerce growth in 2024, with sales expected to reach $85.58 billion in 2025. The platform's influence extends beyond entertainment into retail, with 78% of TikTok shoppers discovering products through influencer content.

The transaction would create the largest social media divestment in history, potentially setting precedent for future foreign-owned platform regulations. Traditional social media companies like Meta and YouTube have already begun copying TikTok's short-form video format, but a sale could accelerate this trend as new American owners implement different strategies.

Financial markets watch closely as TikTok generates approximately $24 billion in US advertising revenue annually. The sale terms and new ownership structure will determine whether this revenue stream continues growing or faces disruption during transition. Competing platforms stand ready to capture displaced users and advertising dollars if the transition encounters problems.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides analysis of how different nations approach foreign technology oversight and digital platform governance.