TikTok has finalized a long-awaited and highly watched deal to restructure its U.S. operations, creating a new American-based entity that will allow the popular social media platform to continue operating in the United States.
The agreement brings to a close a yearslong political and legal saga sparked by national-security concerns over the app’s Chinese ownership.
The newly formed company, TikTok USDS Joint Venture LLC, will be majority-owned and controlled by a consortium of non-Chinese investors, with Chinese parent ByteDance retaining a minority stake.
The deal was approved by both U.S. and Chinese authorities and comes just as a law aimed at forcing TikTok to sell its U.S. business or face a nationwide ban was nearing enforcement.
At the center of the deal are major American and international investors, including Oracle Corp., private equity firm Silver Lake, and Abu Dhabi-based investment company MGX.
Each of these three companies will hold a 15 % stake in the new venture, collectively accounting for a significant portion of ownership.
Other backers could include additional investment firms and affiliates associated with existing ByteDance investors, while ByteDance itself retains approximately 19.9 % of the venture.
The United States first targeted TikTok’s ownership structure in 2024 when Congress passed a law requiring foreign-controlled apps to divest their American operations or face removal from app stores and hosting services across the country.
Lawmakers cited concerns that the Chinese government could force ByteDance to provide access to U.S. user data or influence what Americans see on the platform — fears TikTok has repeatedly denied.
After repeated negotiations and political debate, and a delay of enforcement by President Donald Trump, the U.S. and Chinese governments ultimately agreed on a deal that allows the platform to stay active while placing its U.S. business under American control.
Trump — a vocal figure in pushing for the sale — publicly praised the outcome, thanking Chinese President Xi Jinping for his cooperation and framing the agreement as a win for both national security and free speech.
The new American entity will be led by executives with deep experience both inside and outside TikTok. Adam Presser — a former TikTok head of operations and trust and safety — will serve as the CEO of TikTok’s U.S. unit.
The company’s global CEO, Shou Zi Chew, will sit on the board of the new venture, providing continuity between the global TikTok business and its U.S. operations.
A seven-member board of directors will govern the joint venture, with a majority of directors expected to be American.
This governance structure is intended to reinforce the independence of the U.S. business and ensure decision-making aligns with U.S. legal and regulatory expectations.
One of the core components of the deal centers on data protection and algorithm control — the aspects of the platform that national security critics have been most concerned about. Under the new agreement:
- U.S. user data will be stored in Oracle’s secure cloud infrastructure, with strict cybersecurity measures and regular third-party audits designed to protect the privacy and safety of American users.
- The platform’s recommendation algorithm — often described as TikTok’s “secret sauce” — will be retrained on U.S. user data to ensure the content feed is governed domestically.
- The joint venture will oversee content moderation, software assurance, and other elements of the app’s operation within the United States.
The new structure aims to distance U.S. operations from potential foreign influence while maintaining the same user experience that has made TikTok one of the most downloaded and widely used apps in the world.
Estimates put the number of U.S. users at well over 170 million, underscoring the economic and cultural stakes of the platform’s continued operation.
