TikTok announced Thursday the successful completion of a transformative ownership deal that brings together a coalition of private equity and technology investors to establish a majority American-owned entity, effectively resolving years of legal challenges. The agreement allows the platform to avoid a federal ban while maintaining operations for its massive US user base.
ByteDance, which developed and operates TikTok globally, will maintain just 19.9% ownership of the American entity under the finalized structure. US investors collectively control 80.1%, with three primary stakeholders sharing equal portions: Oracle, representing technology infrastructure investment; Silver Lake, bringing private equity expertise; and MGX, contributing sovereign investment capital from Abu Dhabi. The investment firm of billionaire Michael Dell also participates in the American ownership group.
The deal responds to legislation passed by Congress in 2024 that required TikTok to find an American buyer or face complete prohibition from US digital infrastructure. The law stemmed from bipartisan national security concerns, including fears about potential data access by foreign governments and content manipulation through algorithmic control. The Supreme Court upheld the ban in January 2025, resolving any constitutional questions and leaving the platform’s fate in the hands of negotiators.
The new American TikTok will be headed by Adam Presser as chief executive officer, bringing institutional knowledge from his previous leadership positions within the company, including roles as general manager and global head of operations and trust and safety. Strategic direction will come from a seven-person board of directors, structured with an American majority and filled with professionals who have backgrounds in cybersecurity and national security. Shou Chew, the current global CEO of TikTok, will serve on the board to ensure coordination.
The restructured organization commits to implementing comprehensive safeguards for American users, including advanced data protection measures, secured algorithm architecture, enhanced content moderation, and software integrity protocols. The platform’s recommendation algorithm will undergo complete retraining using exclusively US user data, with continuous testing and refinement to ensure the system operates independently from foreign influence. Both US and Chinese government officials have approved the deal, with President Trump publicly expressing appreciation to Chinese President Xi Jinping for facilitating the arrangement that resolves the legal challenges.
TikTok Resolves Legal Challenge Through Private Equity and Technology Investor Coalition
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