In a significant development for digital privacy and national security, TikTok confirmed Thursday that it has finalized a deal creating a new majority American-owned entity that allows the platform to continue US operations while addressing longstanding concerns about foreign influence. The agreement marks the end of a five-year regulatory battle.
ByteDance, the Beijing-based technology company behind TikTok, will maintain just 19.9% ownership of the new American structure, while US investors control 80.1%. The American ownership group includes three major stakeholders with equal 15% shares: Oracle, led by billionaire Larry Ellison; Silver Lake, a leading technology-focused private equity firm; and MGX, an investment entity from Abu Dhabi. Michael Dell’s investment firm also contributes to the American ownership consortium.
The deal addresses bipartisan legislation enacted in 2024 that effectively banned TikTok unless it separated from Chinese ownership within a designated period. The law reflected widespread concern about national security risks, including potential unauthorized access to American user data by foreign governments and possible algorithmic manipulation. The Supreme Court upheld the legislation in January 2025, but President Trump issued executive orders postponing enforcement to allow for continued negotiations.
Adam Presser will serve as CEO of the new American TikTok, bringing substantial experience from his previous roles as general manager and global head of operations and trust and safety. The entity will be governed by a seven-member board of directors, intentionally structured with an American majority and populated by experts in cybersecurity and national security disciplines. Shou Chew, the current global CEO of TikTok, will participate as a board member.
The restructured organization commits to operating with comprehensive safeguards specifically designed to protect national security, including advanced data protection protocols, secured algorithm architecture, robust content moderation systems, and software integrity verification. Central to these protections is the commitment to completely retrain the content recommendation algorithm using only data from American users, with continuous testing and refinement to ensure the system operates independently from foreign influence. Both US and Chinese government officials have approved the arrangement, with President Trump expressing gratitude to Chinese President Xi Jinping for facilitating the deal, which allows the platform to continue serving its vast American audience.