TikTok’s parent company ByteDance has successfully closed an agreement establishing a majority American-owned venture, allowing the video platform to circumvent a federal ban and secure its future in the United States. The deal, announced Thursday, represents the culmination of negotiations that intensified over the past year following congressional action.
Under the terms of the agreement, American entities will control 80.1% of the newly formed US-based TikTok company, while ByteDance retains a 19.9% minority ownership position. The American ownership group features prominent technology and investment firms: Oracle contributes significant cloud computing infrastructure expertise, Silver Lake brings private equity experience in technology sector investments, and MGX represents sovereign investment interests from Abu Dhabi. Additional capital comes from the investment vehicle of billionaire entrepreneur Michael Dell.
The deal resolves a conflict that escalated when the US Congress passed bipartisan legislation in 2024 requiring TikTok to divest from Chinese ownership or face prohibition from American app stores and internet hosting services. Concerns centered on data privacy and the potential for foreign government surveillance through the platform. After the Supreme Court upheld the legislation in January 2025, President Trump issued a series of executive orders postponing enforcement to facilitate deal negotiations.
Adam Presser will assume the role of CEO for the American TikTok entity, bringing his background as the platform’s former general manager and global operations leader. The company will be governed by a board consisting of seven directors, with Americans holding the majority of seats and bringing specialized knowledge in national security and cybersecurity. TikTok’s current chief executive, Shou Chew, will participate as a board member.
The restructured company commits to implementing comprehensive security measures tailored to protect American users and national interests. These include advanced data protection protocols, algorithm security enhancements, content moderation improvements, and software verification processes. Notably, the platform’s recommendation algorithm will be completely retrained using only US user data, tested rigorously, and updated regularly to ensure it operates independently from foreign influence, addressing the primary concerns that motivated the original ban legislation.