The popular video-sharing platform TikTok announced Thursday it has finalized a comprehensive deal to establish a new majority American-owned entity, successfully avoiding a federal ban that threatened to end its operations in the United States. The agreement caps a five-year period of regulatory pressure and legal challenges that began during President Trump’s first administration.
Under the completed transaction, ByteDance’s ownership of the US TikTok entity drops to 19.9%, while American investors assume control with an 80.1% stake. The American ownership consortium includes three equal partners at 15% each: Oracle, led by technology billionaire Larry Ellison; Silver Lake, a major private equity firm specializing in technology sector investments; and MGX, an investment fund from Abu Dhabi. Additional investment comes from the firm associated with Michael Dell, adding depth to the American capital base.
The deal resolves tensions created by 2024 legislation that required TikTok to find an American buyer or face removal from US digital platforms. Congressional leaders and national security officials argued that Chinese ownership created unacceptable risks, including potential data harvesting by foreign governments and content manipulation through algorithmic control. The Supreme Court affirmed the legislation’s validity in early 2025, after which President Trump used executive powers to delay enforcement while negotiations proceeded.
Adam Presser will lead the American TikTok entity as its chief executive officer, bringing extensive institutional knowledge from his previous roles managing global operations and trust and safety functions. The company will be overseen by a board of directors consisting of seven members, deliberately designed with an American majority and populated by experts in cybersecurity and national security disciplines. Current global TikTok CEO Shou Chew will serve on the board, maintaining strategic continuity.
The restructured company has committed to implementing comprehensive safeguards that directly address the concerns that motivated the ban legislation. These protective measures include advanced data security protocols, algorithm protection systems, enhanced content moderation capabilities, and software integrity verification processes. Crucially, the platform’s recommendation algorithm will undergo complete retraining based solely on American user data, with continuous testing and refinement to ensure it operates independently of foreign systems. President Trump celebrated the deal on social media, thanking Chinese President Xi Jinping for approving the arrangement, which received endorsement from both governments.
TikTok Secures American Future with MGX, Oracle, and Silver Lake Investment Partnership
