In a major development, TikTok has announced the finalisation of a deal to establish a new US entity, allowing the popular social media platform to sidestep a potential ban and end a long-standing legal battle. The deal, which was five years in the making, sets up a majority American-owned venture with investors including Larry Ellison’s Oracle, the private-equity group Silver Lake, and Abu Dhabi’s MGX, collectively owning 80.1% of the new entity. ByteDance, TikTok’s Chinese parent company, will retain a 19.9% stake.
The announcement comes after a tumultuous period for TikTok in the US, which began in 2021 when former President Donald Trump first threatened to ban the app unless it found a US buyer. Congress subsequently voted to pass a law in 2024 banning the app unless it secured a US buyer, a decision that was upheld by the Supreme Court in 2025. However, Trump’s executive orders have repeatedly delayed the enforcement of the ban, allowing time for negotiations to take place.
Under the new arrangement, the US entity will be overseen by a seven-member board of directors, the majority of whom will be American cybersecurity and national security experts. Adam Presser, who previously served as TikTok’s general manager and global head of operations and trust and safety, will take on the role of CEO for the new venture.
The deal has been designed to address the key concerns raised by US lawmakers and officials, particularly around user data security and the potential for the Chinese government to harvest data from American users. The new entity will operate under “defined safeguards that protect national security through comprehensive data protection, algorithm security, content moderation, and software assurances for US users,” according to the announcement.
Notably, the content recommendation algorithm will be retrained, tested, and updated based on US user data, ensuring that the content feed is free from outside manipulation. Additionally, Oracle will oversee the algorithm, while China will retain control of the intellectual property rights.
The White House has confirmed that both the Chinese and US governments have signed off on the deal, marking a significant step forward in resolving the long-running TikTok saga. In a surprising move, former President Trump even took to social media to thank Chinese President Xi Jinping for “working with us and, ultimately, approving the Deal.”
The finalization of this deal is a crucial milestone for TikTok, which has faced an uncertain future in the US for several years. With the new US entity in place, the platform can now focus on continuing to grow and serve its American user base, while addressing the national security concerns that had previously threatened its existence in the country.
