TikTok has successfully navigated a potential nationwide ban by finalizing an ownership restructuring that establishes a new American-majority controlled entity, the company announced Thursday. This landmark agreement resolves a conflict that began five years ago and threatened to shut down one of the world’s most popular social media platforms in the United States.
ByteDance, the Beijing-based parent company of TikTok, will maintain a minority ownership position of 19.9% in the new American structure, while US investors command 80.1% of the company. The American ownership group features three primary investors with equal stakes: Oracle, led by billionaire Larry Ellison; Silver Lake, a major technology-focused private equity firm; and MGX, an investment entity from Abu Dhabi. Each holds 15% of the company, with additional investment from Michael Dell’s firm.
The deal addresses legislation enacted by Congress in 2024 that effectively banned TikTok unless it separated from Chinese ownership within a designated period. The law reflected bipartisan concern about national security risks, including potential unauthorized access to American user data by foreign governments and possible algorithmic manipulation. The Supreme Court affirmed the ban’s constitutionality in January 2025, but President Trump issued executive orders delaying implementation to allow for ongoing negotiations.
Adam Presser will serve as CEO of the new American TikTok, leveraging his extensive experience with the company’s operations and safety protocols. The entity will be governed by a seven-member board of directors, deliberately structured with an American majority and composed of cybersecurity and national security experts. This board composition directly addresses concerns about foreign influence and data security. Shou Chew, TikTok’s current global CEO, will participate as a board member.
According to the company’s announcement, the US entity will operate with comprehensive safeguards protecting national security through multiple mechanisms, including advanced data protection protocols, secured algorithms, enhanced content moderation, and software assurance systems. The platform’s content recommendation algorithm will undergo complete retraining based exclusively on US user data, with rigorous testing and ongoing updates to ensure independence from foreign systems. The deal has received approval from both American and Chinese government officials, with President Trump expressing gratitude to Chinese President Xi Jinping for approving the arrangement, which allows the platform to continue serving its massive American audience.