TikTok has announced the finalisation of a landmark deal to establish a new, majority American-owned entity in the United States, effectively sidestepping a long-threatened ban and concluding years of legal and political uncertainty. The announcement, made on Thursday, marks a significant resolution to a saga that began under the Trump administration and intensified with Congressional action.
A Strategic Partnership to Ensure Continuity
The deal, orchestrated by TikTok's Chinese parent company ByteDance, creates a venture where more than 80% ownership is held by US-based investors and allies. This consortium includes technology giant Oracle, founded by Larry Ellison, the prominent private-equity group Silver Lake, and Abu Dhabi's strategic investment fund MGX. Each of these primary investors will hold a 15% stake in the new entity.
Navigating Political and Legal Hurdles
This development arrives five years after former President Donald Trump first threatened to ban the popular social media platform during his initial term. The situation escalated in 2024 when the US Congress overwhelmingly passed legislation mandating a ban unless TikTok secured a US buyer. Although the Supreme Court upheld this law in January 2025, President Trump signed an executive order on his first day back in office to postpone the ban's enforcement.
Subsequent negotiations have seen repeated delays, as the US government, TikTok, and potential American partners worked towards a viable agreement. In September, another executive order by Trump outlined a framework requiring US investors to assume majority control of TikTok's operations. This plan stipulated that a new version of the app be governed by a seven-member board of directors, with a majority comprised of American cybersecurity and national security experts.
Leadership and Operational Safeguards
The newly formed US entity will be led by Adam Presser, who previously served as TikTok's general manager and global head of operations, trust, and safety. In his role as CEO, Presser will oversee a platform operating under stringent, defined safeguards designed to protect national security.
According to the official announcement, these comprehensive measures will encompass robust data protections, algorithm security, rigorous content moderation protocols, and software assurances specifically for US users. This structure directly addresses the core concerns of US lawmakers and officials, who have long feared that user data could be harvested by the Chinese government—allegations that TikTok has consistently denied.
Broader Implications and Market Response
The 2024 legislation passed under President Joe Biden explicitly prohibited ByteDance from maintaining operational ties with any US TikTok venture. However, it granted the sitting president the authority to determine whether a proposed deal complies with its requirements. The persistent threat of a ban had sparked significant backlash across the United States, particularly from the vast community of influencers and content creators whose livelihoods depend on the platform.
With this agreement, TikTok not only secures its future in one of its largest markets but also sets a precedent for how global tech platforms might navigate complex geopolitical tensions. The involvement of additional investors, such as the investment firm of Michael Dell, founder of Dell Technologies, further underscores the commercial and strategic importance of this resolution.
