TikTok has narrowly averted a long-threatened ban in the United States after its Chinese parent company, ByteDance, concluded a deal this week to restructure its American operations under predominantly non-Chinese ownership, signalling the end of a protracted political and legal standoff.
The new arrangement establishes a US-based business entity — called TikTok USDS Joint Venture LLC — designed to meet stringent national security requirements in American law, allowing the popular short-video platform to continue operating for the more than 200 million Americans who use it.
Under the terms finalised on Thursday, a consortium of largely US and allied investors will own the majority of the new venture. Cloud computing firm Oracle, private equity group Silver Lake and Abu Dhabi-based AI company MGX are among the principal backers, each holding a significant stake, alongside other global investors such as the investment vehicle associated with Dell Technologies.
Together they control about 80.1% of the venture, with ByteDance retaining a minority share of 19.9%, a structure that narrowly complies with the 2024 US law which required divestment of Chinese control for TikTok’s continued presence on American digital infrastructure.
The freshly minted US entity assumes responsibility for TikTok’s operations in the United States, with leadership appointed to reflect its autonomous role. Former head of operations and trust and safety Adam Presser has been installed as chief executive, and a board of directors has been assembled to govern the joint venture, which includes familiar figures from Oracle, Silver Lake and MGX, alongside TikTok’s global chief Shou Zi Chew.
Oracle will also oversee storage of US user data within its domestic cloud infrastructure, which the company and regulators say will strengthen data privacy and cybersecurity safeguards.
The joint venture will retrain and update TikTok’s content recommendation system using US-sourced data within a secure environment, satisfying a key demand from US lawmakers and officials who argued that foreign access to algorithmic systems could constitute a national security concern.
The announcement came just days before a deadline enshrined in legislation passed by Congress in 2024 that threatened to bar TikTok from US app stores and web services if the company did not sever its Chinese ownership links. That law, which enjoyed bipartisan backing, was upheld by the Supreme Court, prompting both TikTok and US authorities to pursue a negotiated settlement rather than an outright shutdown that could have disrupted the livelihoods of creators, brands and users alike.
In public statements, US President Donald Trump, who had repeatedly extended the enforcement deadline while negotiations proceeded, welcomed the outcome as a victory. On social media, he described the resolution as ensuring the app’s survival and thanked Chinese President Xi Jinping for working with US negotiators to bring the deal to fruition, although Beijing’s official statements have been measured, emphasising that enterprises should reach “solutions that comply with Chinese laws and regulations” while balancing interests.
“He could have gone the other way, but didn’t, and is appreciated for his decision,” stated.
