TikTok's new U.S. entity would lease its algorithm from Chinese owner ByteDance under the terms of a proposed deal between the U.S. and China, a senior White House official tells Axios.

Why it matters: Some expected that ByteDance would be required to sell the algorithm to satisfy a 2024 law that demands TikTok be controlled by Americans or face a ban.

• A pure sale, however, wouldn't allow ByteDance to continue operating TikTok in countries outside the U.S., which it plans to do.

Zoom in: The current plan would be for ByteDance to create a duplicate copy of the TikTok algorithm, which then would be leased to a new joint venture controlled by a U.S. investor group led by Andreessen Horowitz, Silver Lake and Oracle.

• Oracle then would retrain the algorithm and secure U.S. user data.
• U.S. users wouldn't need to redownload the app, which would continue to work with TikTok outside the country.
• The White House official says that Beijing approved those terms during a bilateral meeting last week in Madrid, although Chinese government messaging has been more vague.

Between the lines: Some in Congress may object to the lease, given that the legislative language prohibited "cooperation with respect to the operation of a content recommendation algorithm."

• Expect critics to focus on "cooperation" while proponents focus on "operation of."

The intrigue: Several existing ByteDance investors remain in the dark, and even some sources close to the deal are unsure about all the specifics.

• The U.S. government would not have a board seat or equity stake in TikTok U.S., although both were discussed at one point.
• The new board would make final determinations on TikTok U.S. management, and would consist of new investors, existing ByteDance backers, and one ByteDance representative.
• ByteDance and its investors would retain just under a 20% stake in the combined entity, but don't be surprised if some existing ByteDance investors (e.g., General Atlantic and Susquehanna International Group) buy additional shares.
• Trump said in a Fox News interview aired Sunday that the investor group is expected to include Michael Dell, Lachlan Murdoch and Rupert Murdoch. Axios is told Trump was using shorthand for a firm affiliated with Dell, BDT & MSD Partners, and the Murdoch-controlled Fox Corp.

History: Many of these investors have worked together before.

• Silver Lake and Andreessen Horowitz, for example, partnered in 2009 to buy Skype from eBay. Silver Lake also helped Michael Dell take his eponymous computer company private in 2013.

What to watch: Trump is extending his prior enforcement pause by an additional 120 days to finalize details.

The bottom line: TikTok was supposed to be sold or banned by this past January, but Trump has kicked the can several times. Now he's giving himself another four months to cross the finish line.

• It's not over 'til it's over.

Cardless, a branded credit card platform, raised $60 million in Series C funding led by Spark Capital.

Why it's the BFD: The long-term bet is that all consumer financial services will mimic credit cards, in that they'll be branded by non-bank businesses.

• Think: Airline carrier savings accounts. Crypto exchange checking accounts. Ride-hail operator debit cards.

Other investors include Activant Capital, Industry Ventures, and Pear VC.

The bottom line: "If you're someone who wants airline miles when you swipe your credit card, why not instead of some APR on your savings account?" — Cardless president Michael Spelfogel to Axios

• Cerebras Systems, an AI chipmaker on file for an IPO, is nearing a $1b round led by Fidelity at a valuation north of $8b, per Axios Pro. axios.link/4mpaupO

• Tide, the British business management platform, raised $120m at a $1.5b valuation from TPG and insider Apax Digital. axios.link/3KxuB7W

🚑 Ensoma, a Boston-based in vivo hematopoietic stem cell engineering company, raised $53m from insiders Gilead, 5AM Ventures, Catalio Capital Management, Cormorant, Delos Capital, F-Prime, Gates Foundation, Hanwha Impact Partners, Mirae Asset Financial Group, QIA, RTW, Solasta Ventures, SymBiosis and Viking Global Investors. ensoma.com

🚑 Sevaro Health, a provider of virtual neurology services, raised $39m in Series B funding led by Valtruis and Intermountain Ventures. axios.link/3W4cp8o

• Circuit & Chisel, an agentic commerce platform, raised $19.2m in seed funding. Primary Venture Partners and ParaFi Capital led, joined by Stripe, Coinbase Ventures, Solana Ventures, Samsung Next, and Polygon Labs. axios.link/3KlHz8N

🚑 Salt AI, a Culver City, Calif.-based life sciences workflow platform, raised $10m, per Axios Pro. Morpheus Ventures led, joined by Struck Capital, Marbruck Investments and CoreWeave. axios.link/4gyFDWJ

🌎 Brineworks, an Amsterdam-based developer of direct air capture for e-fuels, raised €5m. SeaX Ventures led, joined by Pale Blue Dot, First Momentum, AiiM Partners, Energie360°, and Katapult. axios.link/4pvtMwJ

🌎 Helios AI, a provider of supply chain resilience solutions for agriculture, raised $4.7m in seed funding, per Axios Pro. Collide Capital led, joined by S&P Global Ventures, Stray Dog Capital, Angeles VC, Equity Alliance, and Supply Change Capital. axios.link/46yB3TA

• Mycroft, a Toronto-based provider of security and compliance agents, raised US$3.5m. Luge Capital led, joined by Brightspark Ventures, Graphite Ventures, Ripple Ventures, Developer Capital, Antler, and BoxOne Ventures. axios.link/3K7CwJd

• Rekord, a Dublin-based credit decisioning platform, raised $2.1m in pre-seed funding led by Point Nine Capital. axios.link/4mrtowc

• Atlas Holdings agreed to acquire Office Depot parent The ODP Corp. (Nasdaq: ODP) for around $1b, per $28 per share (15.2% premium to Friday's closing price). axios.link/4ncKkYt

• FountainVest Partners and CPE are in advanced talks to buy SML Group, a Hong Kong-based brand label maker that could fetch more than $600m, per Bloomberg. axios.link/3IAro70

• Keensight Capital agreed to acquire a majority stake in Decision Focus, a Denmark-based provider of governance, risk, and compliance software. axios.link/3VttxEt

⚡ La Caisse agreed to buy Australian renewables developer Edify Energy for A$1.1b axios.link/4pzoy2T

🚑 Patient Square Capital agreed to acquire Premier (Nasdaq: PINC), a Charlotte, N.C.-based health-care performance improvement firm, for around $2.6b. axios.link/4nMZXWO

• Portrait Capital acquired and will merge label-makers AAi Labels and Sticker Ranch. axios.link/42rdNG7

• Silver State, an Edgewater Funds portfolio company, acquired Atlantic Coast, a Miami-based provider of commercial HVAC and kitchen equipment installation and mechanical services. axios.link/4naAeaB

• Stone Point Capital and CPP Investments bought a majority stake in OneDigital, an Atlanta-based insurance brokerage and workforce consultant, at over a $7b valuation from Onex Partners. axios.link/4mnn60F

• Tamarix Equity Partners invested in Royal Oak Recycling, a Detroit-based provider of commercial recycling services. axios.link/47W08dG

No companies plan to price IPOs this week on U.S. exchanges.

• Andersen Group, an SF-based tax advisory formed by former Arthur Andersen partners, filed for an IPO. It plans to list on the NYSE (ANDG) and reports a $45.4m net loss on $384m in revenue for the first half of 2025. axios.link/48qBWQA

• BitGo, a Palo Alto-based digital asset custody and lending platform, filed for an IPO that Renaissance Capital estimates could raise $300m. It reports $12.6m of profit on more than $4b of revenue on the first half of 2025, and plans to list on the NYSE (BTGO). Backers include Redpoint Ventures, Valor Equity Partners, Craft Ventures, and Bridgescale. axios.link/4gCwf4g

• Galata Acquisition II, a SPAC formed by Callaway Capital Management, raised $150m in its IPO. axios.link/4geLf8t

🚑 MapLight Therapeutics, a Redwood City, Calif.-based Phase 2 biotech focused on CNS disorders, filed for an IPO. It plans to list on the Nasdaq (MPLT) and has raised around $660m from firms like Forbion, Goldman Sachs Alternatives, Sanofi, T. Rowe Price, Avego BioScience Capital, Novo Holdings, 5AM Ventures, and Blue Owl Healthcare Opportunities. axios.link/3Ik1ZhZ

• Navan (fka TripActions), a Palo Alto-based corporate travel and expense management platform, filed for an IPO that Renaissance Capital estimates could raise $800m. It plans to list on the Nasdaq (NAVN) and reports a $100m net loss on $329m in revenue for the first half of 2025. Navan has raised over $2b, including in 2022 at a $9.2b valuation, from firms like Lightspeed, a16z, Zeev Ventures, Coatue, 01 Advisors, and Group 11. axios.link/46gSMjG

• Neptune Insurance, a St. Petersburg, Fla.-based flood insurer backed by Bregal Sagemount and FTV Capital, set IPO terms to 18.4m shares at $18-$20. It would have a $2.6b market cap, were it to price in the middle, and plans to list on the NYSE (NP). axios.link/46UUtm3

• Smyk, a Polish children's clothing retailer backed by Accession Capital Partners, hired banks for a Warsaw IPO, per Bloomberg. axios.link/3VZa6DH

• SPACSphere Acquisition, led by SPAC vets Bala Padmakumar and Soumen Das, filed for a $150m IPO. axios.link/4pt4RcV

• Yesway, a Fort Worth, Texas-based convenience store operator backed by Brookwood Financial Partners and HPS Investment Partners, is reviving IPO plans, per Bloomberg. axios.link/46qdmNi

🚑 Bain Capital is seeking to sell Basic Home Infusion, a Wayne, N.J.-based group that focuses on elderly patients and patients with low mobility, per Axios Pro. axios.link/3VWV69o

🚑 PAI Partners is seeking to sell Ethypharm, a French developer of pain and addiction treatment drugs that could fetch around €1b, per Bloomberg. axios.link/4gKjGUz

🚑 Prairie Capital has narrowed its auction for Daphne, Ala.-based Legacy Hospice to three financial sponsors, per Axios Pro. axios.link/4nGtiSA

• Warburg Pincus is seeking to sell TRC Cos., a business services firm that could fetch more than $3b, per the FT. axios.link/3KcOnpm

• Aptiv (NYSE: APTV) is seeking buyers for an electrical distribution unit that it previously planned to spin off, per Bloomberg. It could fetch around $5b. axios.link/3VpumOL

• BBVA (M: BBVA) increased its hostile takeover bid for Banco Sabadell's (Madrid: SAB) by 10% to around €17b. axios.link/42551NP

• Genuine Parts (NYSE: GPC) is weighing a breakup that would separate its industrial parts and auto parts units, per Bloomberg. axios.link/3KbUfiB

• Masan Consumer, a Vietnamese food and beverage group, is seeking to sell up to a $1b minority stake ahead of an IPO, per the WSJ. axios.link/426k2yO

🚑 Pfizer (NYSE: PFE) agreed to buy weight-loss drugmaker Metsera (Nasdaq: MTSR) for up to $4.9b, including $47.50 per share in cash at closing and a CVR of up to $22.50 per share in cash (based on multiple milestones). axios.link/4nALixu

• BlueFive Capital of Abu Dhabi is raising $1b for an Asia-focused PE fund, with plans to close by year-end. axios.link/3Kf5mra

• Blackstone named Katie Keenan as CEO of the firm's real estate income trust, BREIT, following the fatal shooting of Wesley LePatner.

• Dean Demetri and Michael Roualet joined Godspeed Capital Management as a VP of biz dev and a principal, respectively. Both previously were with Baird. godspeed.com

• Inspired Capital promoted both Kamran Ali and Chris Brown to partners. inspiredcapital.com

• Andy Weyer joined JPMorgan as a managing director of tech banking. He previously was a partner with Spinta Capital. axios.link/46KGWhM

The residential real estate market may be cold, but it's getting a very hot merger.

• Compass (NYSE: COMP) today agreed to buy rival Anywhere Real Estate (NYSE: HOUS), whose brands include Century 21 and Coldwell Banker.
• The combined company would be worth around $10 billion (including debt), with Compass shareholders to own 77% of the combined business.

Investors in both companies have shrugged off sluggish home sales, sending shares higher in the anticipation of Fed rate cuts.