The popular social media platform TikTok has successfully finalized an ownership restructuring that creates a majority American-owned entity, allowing it to avoid a federal ban and continue operations in the United States. The announcement Thursday marks the resolution of a conflict that began five years ago when then-President Trump first threatened to ban the app.
ByteDance, the Chinese parent company of TikTok, has agreed to a structure where it maintains only 19.9% ownership of the US entity, with American investors controlling the remaining 80.1%. The American ownership group includes three primary stakeholders with equal 15% shares: Oracle, the enterprise technology and cloud computing company; Silver Lake, a major private equity firm focused on technology investments; and MGX, an investment fund based in Abu Dhabi. Additional investment comes from the firm associated with billionaire Michael Dell.
The agreement resolves tensions stemming from 2024 legislation that required TikTok to separate from Chinese ownership or face prohibition from American digital platforms. The law reflected bipartisan concern about national security risks, including potential foreign government access to user data and manipulation of content algorithms. The Supreme Court upheld the legislation in January 2025, but President Trump issued executive orders delaying enforcement to facilitate deal negotiations.
Adam Presser will assume the role of CEO for the American TikTok entity, leveraging his experience from previous leadership positions within the company, including general manager and global head of operations and trust and safety. The organization will be overseen by a seven-member board of directors, intentionally structured with an American majority and composed of experts in cybersecurity and national security. Shou Chew, TikTok’s current global CEO, will serve on the board.
The new US entity commits to implementing rigorous safeguards addressing the concerns that motivated the original ban legislation, including comprehensive data protection protocols, secured algorithm architecture, enhanced content moderation systems, and software assurance measures. The platform’s recommendation algorithm will be completely retrained using exclusively American user data, with ongoing testing and updates to ensure independent operation. Both US and Chinese government officials have approved the arrangement, with President Trump publicly expressing appreciation to Chinese President Xi Jinping for facilitating the deal, which allows the platform to continue serving its massive American user base without interruption.