After years of regulatory limbo, TikTok has officially secured a deal to form a U.S.-based operation. The move clears the way for continued service to more than 200 million users in the United States and removes the immediate risk of a nationwide ban.
The company confirmed it has signed agreements with a group of major investors to launch TikTok U.S., a newly formed joint venture. Oracle, Silver Lake, and Abu Dhabi-based firm MGX will serve as managing investors, each holding a 15% ownership stake.
Additional backing comes from the investment firm of Dell Technologies founder Michael Dell. TikTok’s parent company, ByteDance, will retain a 19.9% ownership share in the U.S. entity.
Instagram | 360influencemedia | On his first day back in office, President Trump signed an executive order allowing TikTok to remain active while negotiations continued.
According to TikTok, the U.S. business will operate under safeguards intended to address national security concerns. These include controls around data access, software systems, content moderation, and algorithm oversight. American users will continue using the same app without changes.
Adam Presser, formerly TikTok’s head of operations and trust and safety, has been named CEO of the new U.S. entity. He will work with a seven-member board of directors, the majority of whom are American. TikTok CEO Shou Chew will also serve on the board.
This leadership structure aims to strengthen U.S. oversight while maintaining operational continuity.
Government Response and Political Reaction
President Donald Trump publicly praised the agreement in a post on Truth Social. He thanked Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal.” Trump added that he hopes to be remembered by future TikTok users who continue to enjoy the platform.
The deal follows a complex political timeline. A bipartisan law passed by Congress and signed by President Joe Biden required TikTok to find a new owner outside of China or face a U.S. ban. The platform briefly went offline ahead of the January 2025 deadline. On his first day back in office, President Trump signed an executive order allowing TikTok to remain active while negotiations continued.
China also responded to the announcement. Foreign Ministry spokesperson Guo Jiakun stated that China’s position on TikTok “has been consistent and clear,” echoing earlier comments from the Chinese embassy in Washington.
Data Security and Algorithm Changes
Instagram | dallasfingerprint_ | The U.S. TikTok algorithm will be independently retrained on American data.
Data protection sits at the center of the new agreement. U.S. user data will be stored domestically using infrastructure managed by Oracle. This setup aims to limit foreign access and meet federal security expectations.
The TikTok algorithm, which drives personalized video recommendations, also plays a major role in the deal. The company stated that the algorithm for U.S. users will be retrained, tested, and updated using only American user data.
Under the terms of the agreement, ByteDance will license the algorithm to the U.S. entity for retraining. However, this detail raises legal questions. The U.S. law prohibits cooperation related to operating a content recommendation algorithm between ByteDance and any new American ownership group.
Anupam Chander, a professor of law and technology at Georgetown University, noted the broader impact of this issue. “Who controls TikTok in the U.S. has a lot of sway over what Americans see on the app,” he said.
Ownership Breakdown at a Glance
Oracle: 15%
Silver Lake: 15%
MGX: 15%
ByteDance: 19.9%
Other U.S. investors, including Michael Dell’s firm: remaining stake
The agreement brings clarity after years of debate over national security, data privacy, and foreign influence. It also highlights how deeply social media platforms are tied to global politics, regulation, and technology policy.
The creation of TikTok U.S. signals a shift toward stronger American oversight without dismantling the platform that millions rely on daily. While questions remain about how the algorithm licensing will align with federal law, the deal marks a major step toward long-term stability.
For now, TikTok stays online, backed by U.S.-led governance, local data controls, and a reworked operational framework aimed at meeting regulatory demands.