In a historic move that ends years of regulatory uncertainty, TikTok has officially finalized a deal to establish a dedicated American entity. This agreement effectively eliminates the threat of a nationwide ban for the platform’s 200 million U.S. users.
The social media giant has signed definitive agreements with a powerful consortium of investors. This group includes Oracle, Silver Lake, and the Emirati investment firm MGX. Together, they have formed the TikTok U.S. joint venture, which will operate under strict national security protocols.
Leadership and National Governance
The new venture will be led by Adam Presser, who previously served as TikTok’s head of operations and trust and safety. As the new CEO, Presser will oversee the platform’s American operations.
To ensure domestic oversight, a seven-member board of directors has been established. The majority of these members are American citizens. Furthermore, Shou Chew, the global CEO of TikTok, will also hold a seat on this board to maintain continuity.
Technical Sovereignty: The Oracle Solution
A primary focus of this deal is the isolation of American infrastructure from foreign influence. Consequently, the agreement includes several “defined safeguards”:
- Domestic Data Storage: All U.S. user information will now be stored locally in a system exclusively managed by Oracle.
- Algorithm Security: While ByteDance will license the core recommendation code to the U.S. entity, the algorithm will be retrained and tested solely on American data.
- Software Assurances: The deal mandates comprehensive audits to ensure that the platform meets all U.S. security and content moderation standards.
The Political Journey to Resolution
The path to this deal was remarkably turbulent. The platform briefly went dark in January 2025 after a law signed by President Joe Biden required ByteDance to sell the app. However, the situation changed rapidly when President Donald Trump returned to office.
On his first day, President Trump signed an executive order to keep the app running while his administration negotiated this final sale. Recently, Trump praised the deal on Truth Social, specifically thanking Chinese leader Xi Jinping for his cooperation in approving the arrangement.
Ownership Breakdown
The joint venture features a diversified group of stakeholders designed to balance international interests with American regulatory requirements:
- Oracle: 15% share
- Silver Lake: 15% share
- MGX: 15% share
- ByteDance: 19.9% share
- Michael Dell’s Investment Firm: Minority stake
Despite these major structural changes, the user experience will remain seamless. American users can continue to use the same app they have always enjoyed without needing to download a new version.
