TikTok Restructuring Gives US Investors 80% Control, Satisfying Ban Requirements

In a significant development for the future of social media in America, TikTok announced Thursday that it has finalized a deal creating a new majority American-owned entity that allows the platform to operate without facing a federal ban. The agreement represents a major restructuring that addresses years of national security concerns while preserving the app’s functionality for American users.
The ownership transformation reduces ByteDance’s stake in the US operation to just 19.9%, with American investors collectively holding 80.1% of the new company. The investor group includes three major stakeholders with equal 15% shares: Oracle, the technology infrastructure company; Silver Lake, a leading private equity firm focused on technology; and MGX, an investment fund based in Abu Dhabi. The investment vehicle of Michael Dell, the billionaire technology entrepreneur, also participates in the American ownership structure.
This resolution stems from legislation Congress passed in 2024 with overwhelming bipartisan support, requiring TikTok to divest from Chinese ownership or face prohibition from operating on US digital infrastructure. The law reflected concerns about data security and potential foreign government influence over the platform’s algorithms and user data. After the Supreme Court upheld the legislation in January 2025, President Trump employed executive authority to postpone enforcement while facilitating negotiations among the parties.
Leadership of the American TikTok entity will fall to Adam Presser, who previously held senior positions with the company including general manager and global head of operations and trust and safety. The company will operate under the guidance of a seven-person board of directors, intentionally constructed with an American majority and filled with cybersecurity and national security experts. Current TikTok CEO Shou Chew will serve as a board member, ensuring coordination between the US entity and global operations.
The restructured organization commits to operating under defined safeguards specifically designed to protect national security, including comprehensive data protection systems, algorithm security measures, enhanced content moderation, and software integrity assurances. The platform’s recommendation algorithm will be completely retrained using only data from American users, with continuous testing and updates to maintain independence. Both the US and Chinese governments have approved the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for his role in facilitating the deal, which brings relief to millions of American content creators who depend on the platform.