In a major development for the social media landscape, TikTok confirmed Thursday that it has successfully established a new majority American-owned corporate entity, effectively resolving the threat of a US ban that has loomed over the platform for five years. The deal represents a significant restructuring that addresses national security concerns while preserving the app’s presence in one of its largest markets.
ByteDance, which developed and launched TikTok globally, will retain just 19.9% ownership in the new American structure, ceding majority control to US-based investors who will hold 80.1%. The American ownership group includes technology infrastructure leader Oracle, private equity specialist Silver Lake, and MGX from Abu Dhabi, each contributing 15% stakes. Michael Dell’s investment firm also participates in the ownership consortium, adding to the American capital commitment.
The deal emerges from legislation passed overwhelmingly by Congress in 2024 that prohibited TikTok from operating in the US under Chinese ownership, citing data security and potential foreign influence concerns. The law required either a sale to American interests or complete removal from US app stores and hosting services. Following Supreme Court affirmation of the law in January 2025, President Trump issued multiple executive orders delaying enforcement to allow time for the parties to negotiate acceptable terms.
Adam Presser, a TikTok veteran with extensive experience in operations and trust and safety leadership, will serve as the CEO of the American entity. Strategic direction will come from a seven-member board of directors, intentionally structured with an American majority and filled with experts in protecting national security and cybersecurity infrastructure. Shou Chew, the current global CEO of TikTok, will serve on this board, ensuring continuity and global coordination.
The American TikTok entity commits to operating under strict safeguards that address the concerns which motivated the original ban legislation. These include comprehensive protocols for protecting user data, securing the recommendation algorithm against foreign access, enhancing content moderation specifically for US audiences, and providing software assurances. The platform’s algorithm will be retrained from the ground up using exclusively American user data, with continuous testing and updates to maintain independence. The deal has received approval from both US and Chinese government authorities, with President Trump publicly expressing gratitude to Chinese President Xi Jinping for facilitating the agreement.