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TikTok completes agreement to establish new US entity
TikTok has finalized a deal to create a new U.S.-based entity, resolving years of uncertainty over the platform’s potential ban in the United States, where it is used by more than 200 million Americans.
The agreement includes major investors Oracle, Silver Lake, and Emirati firm MGX, who will help form the TikTok U.S. joint venture. The company said the new entity will operate under strict safeguards to protect national security, including robust data protections, algorithm security, content moderation, and software assurances for U.S. users. The app itself will remain the same for Americans.
Former TikTok head of operations and trust and safety, Adam Presser, will serve as CEO of the new venture, working alongside a seven-member board of directors that is majority American and includes TikTok CEO Shou Chew.
The deal comes after years of political pressure and legislation that threatened to ban the platform unless it divested from its Chinese parent, ByteDance. In January 2025, TikTok was temporarily set to go offline under the law, but an executive order from President Donald Trump allowed the platform to continue operating while negotiations took place.
TikTok emphasized that U.S. user data will now be stored locally in systems run by Oracle. The company also said its algorithm, which drives personalized video recommendations, will be retrained, tested, and updated using only U.S. data. Previously, the algorithm was a central security concern, as Chinese law required it to remain under ByteDance control. Under the deal, ByteDance will license the algorithm to the U.S. entity for retraining, though U.S. law prohibits any cooperation with ByteDance on content recommendations, leaving the exact arrangement somewhat unclear.
The joint venture’s managing investors—Oracle, Silver Lake, and MGX—will each hold a 15% stake. Other investors include Michael Dell’s investment firm, while ByteDance retains a 19.9% share.
The agreement marks a major step in securing TikTok’s continued presence in the U.S. while addressing long-standing national security concerns.
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