The popular video-sharing platform TikTok announced a major milestone on Thursday, confirming the closure of a deal that establishes a new American-majority owned company, effectively sidestepping a looming nationwide ban. This development brings an end to years of uncertainty surrounding the app’s operations in the United States.
ByteDance, the Beijing-based technology company that created TikTok, has agreed to reduce its ownership stake to just 19.9% in the new American entity. The controlling 80.1% interest will be distributed among several high-profile American investors and companies. Oracle, the cloud computing giant led by billionaire Larry Ellison, joins forces with private equity firm Silver Lake and MGX, an investment company based in Abu Dhabi, each securing 15% ownership stakes in the reconfigured social media platform.
The path to this agreement began when lawmakers overwhelmingly passed legislation in 2024 demanding that TikTok separate from Chinese ownership or cease American operations entirely. National security officials expressed concerns that user data could be accessed by the Chinese government, allegations that TikTok has consistently denied. After the Supreme Court validated the ban in early 2025, President Trump intervened with executive orders postponing enforcement to allow time for negotiations.
Leadership of the new American TikTok will fall to Adam Presser, a company veteran who held senior positions including general manager and global head of operations and trust and safety. Governance will be handled by a board of directors comprising seven members, the majority of whom are American experts in cybersecurity and national security. This structure is designed to ensure that national security interests remain protected while maintaining the platform’s functionality.
The agreement includes specific safeguards addressing government concerns about data security and content integrity. The platform’s recommendation algorithm will undergo complete retraining based solely on American user data, with ongoing testing and updates to ensure compliance. Both the US and Chinese governments have reportedly approved the arrangement, paving the way for TikTok to continue serving its massive American user base without interruption.