TikTok Signs Deal to Avoid Shutdown in the United States

TikTok has announced that it has signed a major investment and partnership agreement aimed at ensuring the platform continues operating in the United States, amid long-standing concerns over national security and Chinese ownership.

The move is intended to address U.S. government fears that the platform could be controlled by China and potentially used to collect data on American users.

New U.S.-Based Company to Be Created

TikTok Chief Executive Officer Shou Chew told employees that TikTok and its parent company, ByteDance, have agreed to establish a new U.S.-based company to oversee TikTok’s operations in the country.

The new entity will include major investors such as Oracle, Silver Lake, and MGX, an investment firm based in Abu Dhabi.

Oracle Chairman Larry Ellison, a close ally of former U.S. President Donald Trump, is expected to play a key role in overseeing the implementation of the agreement.

Ownership Structure Limits Chinese Control

Under the proposed structure, one-third of the new company will be owned by existing ByteDance investors, while ByteDance itself will retain a 20 percent stake.

This ownership arrangement is in line with U.S. regulations, which restrict the level of control Chinese companies can hold in American technology firms.

Although ByteDance will maintain partial influence, most governance and operational control will rest with non-Chinese investors to comply with U.S. law.

Compliance With U.S. Law

The agreement aligns with legislation signed during the presidency of Joe Biden, which required ByteDance to either sell TikTok’s U.S. operations or face a ban from the American market.

U.S. officials, including Donald Trump, have repeatedly expressed concerns that TikTok could be used by the Chinese government to gather sensitive data on American citizens.

Data Security Assurances

Chew said the new company will operate independently while strictly adhering to U.S. data protection and national security laws.

“This new entity will function as an independent company, fully compliant with data privacy and security requirements,” Chew said.

Trump’s Role in Oversight

In September 2025, Trump reportedly asked Larry Ellison to monitor the implementation of the agreement, highlighting the political significance of TikTok’s future in the United States.

The deal represents a major step toward securing TikTok’s continued presence in one of its largest markets.