The widely used video-sharing application TikTok has successfully concluded arrangements to establish a new majority American-owned company, effectively avoiding a federal prohibition that threatened its US operations. The announcement Thursday brings closure to years of political pressure and legal uncertainty surrounding the platform’s presence in America.
ByteDance, the Chinese technology conglomerate that created TikTok, has agreed to reduce its ownership stake to 19.9% in the American entity, transferring majority control to US investors who will hold 80.1%. The American ownership group comprises several prominent investors: Oracle, with 15%; Silver Lake, with 15%; and MGX, with 15%. Additional investment comes from the firm associated with billionaire entrepreneur Michael Dell, strengthening the American capital commitment.
The agreement addresses legislation passed by Congress in 2024 that mandated TikTok divest from Chinese ownership or cease American operations due to national security considerations. Lawmakers and intelligence officials expressed concern that the platform could be exploited by foreign governments to access sensitive data or manipulate American public discourse. After the Supreme Court validated the ban in early 2025, President Trump issued executive orders postponing enforcement to facilitate deal negotiations.
The restructured American TikTok will be managed by Adam Presser as chief executive officer, utilizing his institutional knowledge from previous senior leadership roles with the company. Corporate governance will be exercised by a seven-member board of directors, deliberately composed with an American majority and staffed by professionals with expertise in cybersecurity and national security. Current global TikTok CEO Shou Chew will participate as a board member.
The new entity commits to implementing rigorous safeguards specifically designed to protect American users and national interests, including comprehensive data protection protocols, secured algorithm architecture, robust content moderation systems, and software integrity assurances. The platform’s recommendation algorithm will undergo complete retraining based solely on American user data, with ongoing testing and updates to maintain independence. President Trump publicly celebrated the agreement, expressing thanks to Chinese President Xi Jinping for approving the deal. Both the US and Chinese governments have endorsed the arrangement, which received praise from the White House and allows the platform to continue serving its vast American audience.
