The White House says the video service is a security risk because the personal information of its millions of US users could be handed over to Chinese authorities.
As per the plan presented to the US officials by ByteDance, TikTok will remain the majority shareholder of the new US-headquartered company.
United States, Australia, Britain and India are among the huge markets where they have taken a hit because of espionage concerns or diplomatic feuds, tethering their international ambitions.
In a letter to employees, Mayer said that his decision to leave comes after the “political environment has sharply changed.”
Trump signed executive orders on August 6 that would prevent TikTok and WeChat from operating in the US as they threatened America's national security and economy.
Microsoft is the frontrunner to purchase TikTok's US business following a discussion between the company's CEO and the US President.
Zhao said TikTok had done everything required by the US, including hiring only Americans as its top executives, hosting its servers in the US.
The order builds on sweeping restrictions issued last week by Trump that TikTok and WeChat end all operations in the US, his latest explosive moves aimed at countering China's rising global power.
India is the largest market for the short video app outside China with more than 611 million downloads generated till date, according to data sourced from market intelligence firm Sensor Tower.
Earlier, media reports, citing an unidentified source, said on Friday that Microsoft is in talks to buy TikTok.