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TikTok said on Thursday that it had reached an agreement to create a new US-based entity, clearing the way for the platform to avoid a nationwide ban and bringing an end to a years-long legal and political standoff.
Under the deal struck by TikTok’s parent company, ByteDance, the new venture will be majority owned by American investors. Oracle founder Larry Ellison, private-equity firm Silver Lake and Abu Dhabi-backed MGX will together control 80.1% of the company, while ByteDance will retain a 19.9% stake.
The announcement comes nearly five years after Donald Trump first raised the possibility of banning TikTok during his first presidency.
TikTok’s status in the US has been uncertain since Congress passed legislation in 2024 requiring ByteDance to sell the app or face a ban. Although the Supreme Court upheld the law in January 2025, Trump delayed its enforcement on his first day back in office and continued to extend the deadline as negotiations with US partners progressed.
In September, Trump issued another executive order outlining plans for US investors to assume majority control of TikTok’s American operations, overseen by a seven-member board dominated by US cybersecurity and national security experts.
The company said Adam Presser, a former TikTok executive who previously led operations and trust and safety, will serve as chief executive of the new entity. TikTok’s current CEO, Shou Chew, will also sit on the board.
According to TikTok, the US entity will operate under strict safeguards designed to address national security concerns, including enhanced data protection, algorithm security, content moderation and software oversight. The recommendation algorithm will be retrained and updated using US user data.
A White House official confirmed that both the US and Chinese governments had approved the agreement, though China’s embassy in Washington declined to comment immediately, according to Reuters.
Trump welcomed the deal in a social media post, thanking Chinese president Xi Jinping for approving it and praising the outcome. He said TikTok would now be owned by American investors and continue to serve as an influential platform.
US lawmakers have long raised concerns that TikTok could allow the Chinese government access to American user data — allegations the company has consistently denied.
The 2024 legislation passed under former president Joe Biden prohibited ByteDance from maintaining operational control over a US TikTok entity, while granting the president authority to determine whether any deal met the law’s requirements.
The prospect of a ban sparked significant backlash from US content creators and influencers who rely on the app for their livelihoods.
TikTok said Silver Lake, Oracle and MGX will each hold a 15% stake in the new company, with additional investment from the firm of Michael Dell, founder of Dell Technologies.
