TikTok Finalises Deal to Form Majority U.S.-Owned Entity, Averting Potential Ban

TikTok has finalised a long-anticipated agreement to secure its presence in the United States, ending years of political and regulatory uncertainty over the video platform. Under the deal, TikTok’s parent company, ByteDance, has reached an agreement with a consortium of non-Chinese investors to establish a new joint venture majority-owned by American stakeholders, allowing the app to continue operating in the U.S.

The agreement brings to a close a six-year saga that began in 2020, when then-President Donald Trump sought to ban TikTok over concerns that the app posed national security risks because of its Chinese ownership. Since then, TikTok has faced repeated scrutiny from U.S. lawmakers and regulators, prompting ongoing negotiations over ownership, data security, and governance.

Under the new structure, Adam Presser, who previously served as TikTok’s head of operations and trust and safety, will take on the role of chief executive officer of the newly formed TikTok USDS Joint Venture LLC. TikTok’s global CEO, Shou Chew, will remain involved in the business as a director of the joint venture.

The three managing investors in the venture — Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX — will each hold a 15% ownership stake. Additional backing comes from a group of other investors, including the family investment firm of Michael Dell and several smaller participants.

According to TikTok, the TikTok USDS Joint Venture “will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.” The company said these measures are designed to address long-standing concerns raised by U.S. officials about how American user data is handled and how the platform’s recommendation systems operate.

The joint venture will function as an independent entity overseen by a seven-member board. In addition to Chew, the board will include Timothy Dattels of TPG Global, Mark Dooley of Susquehanna International Group, Egon Durban, Raul Fernandez, Kenneth Glueck, and David Scott.

Trump publicly welcomed the announcement, praising the outcome in a post on Truth Social. He said the app “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” framing the deal as a win for U.S. interests and domestic oversight of the widely used social media platform.