TikTok Secures Future in US With New Entity

Social media platform TikTok has finalised a long-anticipated agreement to create a new United States-based entity, significantly easing the threat of a nationwide ban that has hovered over the short-video app for several years.

According to news agency The Associated Press (AP), TikTok has signed binding agreements with key investors, including Oracle, Silver Lake, and Abu Dhabi-based investment company MGX, to establish a TikTok US joint venture.

National Security Safeguards at the Core of the Deal

TikTok’s Official Statement

TikTok said the new structure will operate under “defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for US users.”

The company added that American users will continue to access the same app, indicating no change in the consumer experience despite the restructuring.

Trump Welcomes TikTok Agreement, Thanks Xi and Vance

Trump’s Statement on Truth Social

US President Donald Trump welcomed the agreement and posted a message on his Truth Social platform, thanking US Vice President JD Vance and Chinese President Xi Jinping.

“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump wrote.

Trump also linked TikTok’s influence to his electoral success, stating that it was “responsible for my doing so well with the Youth Vote in the 2024 Presidential Election.”

Praise for Dealmakers and China

Trump thanked JD Vance and members of his administration for finalising the deal, describing the outcome as “very dramatic, final, and beautiful.”

He also expressed appreciation for China’s cooperation, saying, “I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision.”

Leadership and Governance of TikTok US

New CEO and Board Structure

Adam Presser, a former TikTok executive who previously led operations and trust and safety, will serve as CEO of the new US entity.

He will work with a seven-member board, which will have a majority of American directors. TikTok’s global CEO Shou Chew will also be part of the board, according to AP.

Ownership Structure of TikTok US

Shareholding Breakdown

Under the new structure:

• Oracle: 15% stake

• Silver Lake: 15% stake

• MGX (Abu Dhabi): 15% stake

Other investors include the investment firm of Dell Technologies founder Michael Dell.

TikTok’s China-based parent company ByteDance will retain a 19.9% ownership stake, remaining below the threshold typically associated with control.

Algorithm and Data Security Remain Central Issues

Data Storage and Algorithm Management

Data security remains one of the most sensitive aspects of the agreement.

According to AP:

• US user data will be stored domestically on systems operated by Oracle

• TikTok’s recommendation algorithm will be retrained and updated using US user data under the new US entity

Legal and Regulatory Questions

Despite these measures, the deal raises questions about compliance with US law, which bars “any cooperation with respect to the operation of a content recommendation algorithm” between ByteDance and a new American owner.

Under the agreement, ByteDance will license the algorithm to the US venture—a provision that could face regulatory scrutiny, according to AP.

China’s Response Awaited

As of now, the Chinese government has not publicly commented on the announcement or confirmed its official stance on the deal.

Why the TikTok US Deal Matters

The creation of a TikTok US entity is a critical step in:

• Addressing long-standing US national security concerns

• Ensuring continued access for millions of American users

• Preserving TikTok’s role in US digital culture and politics

• Redefining cross-border tech ownership structures

With binding agreements now in place, TikTok’s future in the US appears more stable, though regulatory review and political scrutiny are likely to continue.