The popular social media platform TikTok has finalized a comprehensive ownership restructuring that establishes a majority American-owned entity while maintaining strategic continuity through the board participation of current CEO Shou Chew. The announcement Thursday marks the resolution of a five-year conflict that threatened to ban the app from the United States.
ByteDance, the Chinese parent company of TikTok, has agreed to a structure reducing its ownership to 19.9%, while American investors assume controlling interest with 80.1% of the company. The American ownership consortium includes three equal partners at 15% each: Oracle, led by technology billionaire Larry Ellison; Silver Lake, a major private equity firm focused on technology sector investments; and MGX, an investment fund from Abu Dhabi. Michael Dell’s investment firm provides additional American capital.
This resolution addresses legislation enacted by Congress in 2024 that effectively banned TikTok unless it separated from Chinese ownership within a designated timeframe. The law reflected bipartisan concern about national security risks, including potential unauthorized access to user data by foreign governments and possible algorithmic manipulation. The Supreme Court affirmed the legislation’s validity in January 2025, but President Trump utilized executive powers to postpone enforcement during ongoing negotiations.
Leadership of the American entity will be entrusted to Adam Presser, who previously held senior positions managing global operations and trust and safety functions for TikTok. The company will be overseen by a seven-member board of directors, deliberately designed with an American majority and composed of cybersecurity and national security experts. Shou Chew, who currently serves as TikTok’s global CEO, will join this board, ensuring coordination between the US entity and worldwide operations.
The new US company commits to operating with defined safeguards protecting national security through multiple layers, including comprehensive data protection systems, algorithm security measures, enhanced content moderation, and software assurance protocols. The platform’s recommendation algorithm will be completely retrained using exclusively US user data, with rigorous testing and ongoing updates to maintain independence from foreign influence. Both American and Chinese government officials have approved the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for his role in facilitating the deal, which allows the platform to continue serving its massive American user base.