Byte Dance agreed to spin off TikTok’s U.S. business and offered to take over by Microsoft and two other companies.

(Reuters) – Byte Dance has agreed to divest TikTok’s U.S. operations completely to salvage a deal with the White House after U.S. President Donald Trump said on Friday that he had decided to disable the app, two people familiar with the matter said on Saturday. Byte Dance had previously tried to take a minority stake in TikTok’s US business, but the White House rejected it.

Under the new deal proposal, Byte Dance will exit completely and Microsoft will take over TikTok’s U.S. operations, the sources said. Some US-based Byte Dance investors may have access to minority stakes in the business, the sources added.

Byte Dance agreed to spin off TikTok's U.S. business and offered to take over by Microsoft and two other companies.

The White House did not respond to a request for comment on whether Trump would accept Byte Dance’s concession. Byte Dance did not respond to a request for comment.

Under ByteDance’s new proposal, Microsoft will be responsible for protecting all U.S. user data, the sources said. The plan allows another US company other than Microsoft to buy TikTok, the source added.

Microsoft also did not respond to a request for comment.