TikTok US entity deal finalized to avoid ban

The TikTok US entity deal has been finalized, allowing the popular social media platform to continue operating in the United States and sidestep a potential ban. The agreement ends years of legal and political uncertainty surrounding TikTok’s ownership and data security.

TikTok establishes majority US-owned venture

TikTok announced on Thursday that it has completed a deal to create a new US-based entity, majority owned by American investors. The agreement was finalized by ByteDance, TikTok’s Chinese parent company.

Under the deal, US investors will own 80.1% of the new company, while ByteDance retains a 19.9% stake. Major investors include Oracle, Silver Lake, Abu Dhabi’s MGX, and Michael Dell’s investment firm.

The move allows TikTok to comply with US legislation passed in 2024 that required the app to find a US buyer or face a nationwide ban.

Background: From ban threat to deal

Concerns about TikTok’s future in the US began during Donald Trump’s first term, when he initially threatened to ban the app. The issue intensified in 2024 when Congress passed a law forcing ByteDance to divest from TikTok’s US operations.

The Supreme Court upheld the law in January 2025. However, President Trump delayed enforcement through executive orders while negotiations continued.

In September, Trump outlined a plan for US investors to take operational control, a framework that ultimately led to this deal.

Leadership and governance structure

The new US entity will be overseen by a seven-member board, dominated by American representatives. Board members include executives from Oracle, Silver Lake, MGX, TPG, and TikTok CEO Shou Zi Chew.

Former TikTok executive Adam Presser will serve as CEO of the new venture.

Data security and algorithm oversight

Addressing national security concerns, TikTok said the US entity will operate under strict safeguards covering data protection, content moderation, and software security.

Oracle will oversee the content recommendation algorithm for US users. The algorithm will be retrained and tested using US-based data to prevent outside influence.

TikTok stated that these measures aim to ensure transparency and protect American users’ data.

US and China approve the agreement

A White House official confirmed that both the US and Chinese governments approved the deal. Former President Trump publicly thanked Chinese President Xi Jinping for cooperating.

China will retain ownership of TikTok’s core algorithm, with licensing arrangements included as part of the agreement.

The TikTok US entity deal brings relief to millions of American creators and influencers who rely on the platform for income. It also marks a rare compromise between Washington and Beijing on a major technology issue.

Lawmakers remain cautious, but the deal represents a major shift in how foreign-owned tech platforms operate in the US.