In a major victory for the social media platform, TikTok confirmed Thursday that it has successfully completed a deal to create a new majority American-owned entity, allowing the app to continue serving US users while avoiding a nationwide ban. The agreement concludes a protracted dispute that began five years ago during President Trump’s first term.
ByteDance, which developed and operates TikTok globally, will retain only 19.9% ownership of the American entity under the finalized structure. American investors collectively control 80.1%, with three primary stakeholders each holding 15%: Oracle, the enterprise software and cloud computing company; Silver Lake, a prominent technology-focused private equity firm; and MGX, an investment entity from Abu Dhabi. The billionaire Michael Dell’s investment firm also contributes capital to the American ownership group.
The deal responds to legislation passed overwhelmingly by Congress in 2024 that required TikTok to find an American buyer or face complete prohibition from US digital infrastructure. The law stemmed from national security concerns, including fears that the Chinese government could access American user data or manipulate content algorithms. After the Supreme Court upheld the ban in January 2025, President Trump issued multiple executive orders delaying enforcement to allow negotiations to proceed.
The new American TikTok will be headed by Adam Presser as chief executive officer, drawing on his substantial experience managing the company’s global operations and trust and safety systems. Strategic direction will come from a seven-person board of directors, purposefully structured with an American majority and filled with cybersecurity and national security experts. Shou Chew, the current global CEO of TikTok, will serve as a board member, ensuring coordination across the company.
According to the company’s announcement, the US entity will implement defined safeguards protecting national security through multiple layers, including comprehensive data protection measures, secured algorithms, enhanced content moderation, and software assurance protocols. The platform’s recommendation algorithm will undergo complete retraining based exclusively on data from American users, with rigorous testing and ongoing updates to ensure independence. The deal has received approval from both US and Chinese government authorities, with President Trump expressing gratitude to Chinese President Xi Jinping for facilitating the agreement, which allows millions of American influencers and creators to continue using the platform.