TikTok has successfully completed a landmark ownership restructuring that establishes a new majority American-owned company, allowing the platform to continue serving US users while addressing national security concerns that nearly resulted in a nationwide ban. The announcement Thursday brings clarity after years of regulatory uncertainty and political negotiations.
ByteDance, the Chinese technology company behind TikTok’s creation, has agreed to reduce its ownership stake to 19.9% in the newly structured American entity. American investors will control the remaining 80.1%, with ownership distributed among several prominent firms. Oracle, Silver Lake, and MGX each hold 15% stakes, while Michael Dell’s investment firm contributes additional capital. This ownership structure shifts control decisively to American hands while maintaining ByteDance’s financial interest.
The agreement responds to bipartisan legislation passed in 2024 that mandated TikTok separate from Chinese ownership or cease American operations entirely. Lawmakers expressed concern that the platform could be exploited for foreign intelligence gathering or used to manipulate American public opinion through its content recommendation algorithms. After the Supreme Court validated the law in January 2025, President Trump issued a series of executive orders delaying its enforcement to allow time for deal negotiations.
The new American TikTok will be headed by Adam Presser, who brings valuable experience from his previous leadership positions within the company, including roles as general manager and global head of operations and trust and safety. Strategic oversight will be provided by a seven-member board of directors, structured with an American majority and composed of professionals with backgrounds in national security and cybersecurity. Shou Chew, TikTok’s current global CEO, will participate as a board member.
The company has outlined specific safeguards that will govern the US entity’s operations, including comprehensive data protection measures, secured algorithm architecture, robust content moderation systems, and software assurance protocols. The platform’s content recommendation algorithm will be completely rebuilt using exclusively US user data, with ongoing testing and updates to ensure it remains independent from foreign influence. The deal has received approval from both American and Chinese government officials, with President Trump publicly expressing appreciation to Chinese President Xi Jinping for facilitating the arrangement, which allows TikTok to continue serving its massive American user base.