TikTok has officially secured its future in the United States after finalizing a landmark deal to create a new majority American-owned entity, ending years of political uncertainty surrounding the popular social media platform.
The agreement, signed by TikTok’s parent company ByteDance and a consortium of non-Chinese investors, establishes TikTok USDS Joint Venture LLC, allowing the app to continue operating nationwide while addressing long-standing national security concerns.
The deal concludes a six-year saga that began in 2020, when former President Donald Trump first attempted to ban TikTok, citing risks related to Chinese ownership and potential access to U.S. user data. Since then, lawmakers from both parties have pushed for stricter controls or divestment, threatening TikTok with removal from app stores unless ownership changes were made.
Under the new structure, TikTok’s U.S. operations will be run independently, with Adam Presser, TikTok’s former head of operations and trust and safety, appointed as CEO of the new venture. Current TikTok CEO Shou Chew will serve as a director on the board.
The joint venture will be majority owned by U.S.-based and allied investors. Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX will each hold a 15% stake. Additional investors include Michael Dell’s family investment firm and several smaller institutional partners.
TikTok stated that TikTok USDS Joint Venture will operate under “defined safeguards” designed to protect U.S. national security. These measures include strict data localization, algorithm security oversight, enhanced content moderation standards, and software integrity controls. Oracle is expected to continue playing a central role in hosting U.S. user data and overseeing sensitive infrastructure.
The new entity will be governed by a seven-member board featuring executives from Oracle, Silver Lake, MGX, DXC Technology, TPG Global, and Susquehanna International Group, alongside Shou Chew.
Former President Trump praised the agreement on Truth Social, calling the investors “Great American Patriots” and saying the deal ensures TikTok remains an influential platform for free expression in the U.S.
This historic restructuring marks a major turning point for TikTok, stabilizing its U.S. business while setting a precedent for how foreign-owned tech platforms can address national security concerns in global markets.
