TikTok has successfully completed a transformative ownership deal that establishes a majority American-owned entity, allowing the platform to sidestep a federal ban and preserve the livelihoods of millions of content creators who depend on it. The announcement Thursday concludes five years of uncertainty that began when President Trump first threatened to ban the app during his initial term.
The finalized ownership structure significantly reduces ByteDance’s stake to 19.9%, while American investors collectively control 80.1% of the new US-based company. Three primary investors share equal ownership at 15% each: Oracle, the enterprise technology giant; Silver Lake, a prominent private equity firm specializing in technology investments; and MGX, an investment fund from Abu Dhabi. The investment firm associated with billionaire Michael Dell also participates in the American ownership group.
This settlement resolves tensions created by 2024 congressional legislation that required TikTok to secure American ownership or face removal from US app stores and hosting services. The law stemmed from bipartisan concern about national security vulnerabilities, including potential data harvesting and content manipulation by foreign actors. The Supreme Court affirmed the ban’s constitutionality in January 2025, after which President Trump used executive discretion to delay enforcement during negotiations.
Leadership of the American entity will fall to Adam Presser, who previously managed global operations and trust and safety initiatives for TikTok. The company will be overseen by a seven-person board of directors, deliberately designed with an American majority and composed of professionals with backgrounds in cybersecurity and national security. Current global TikTok CEO Shou Chew will serve on the board to ensure strategic continuity.
The new US entity commits to implementing rigorous safeguards for American users, including comprehensive data protection measures, secured algorithms, enhanced content moderation, and software integrity protocols. The platform’s recommendation algorithm will be completely retrained using exclusively US user data, with ongoing testing and refinement to ensure independence. Both US and Chinese government officials have approved the deal, with President Trump publicly thanking Chinese President Xi Jinping for facilitating the agreement. The resolution brings certainty to American influencers and creators who faced the prospect of losing their primary platform and income source.
Photo by Ivan Radic, via Flickr
