The popular social media platform TikTok has finalized an ownership restructuring that establishes a majority American-owned entity, preventing the widespread backlash from influencers and creators that a ban would have triggered. The announcement Thursday brings relief to a community that mobilized extensively against the threat of losing their primary platform.
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. Three major investors share equal ownership at 15% each: Oracle, led by technology billionaire Larry Ellison; Silver Lake, a prominent 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 to the ownership consortium.
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’s passage and subsequent Supreme Court validation triggered significant opposition from content creators who depend on the platform for their livelihoods. The threat of a ban caused widespread backlash from influencers and creators, who organized campaigns and lobbied against enforcement.
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. Current global TikTok CEO Shou Chew will participate as a board member, ensuring strategic continuity.
The new US entity commits to implementing rigorous safeguards for American users, including comprehensive data protection protocols, secured algorithms, enhanced content moderation, and software integrity measures. The platform’s recommendation algorithm will be completely retrained using exclusively US user data, with ongoing testing and refinement to ensure independence from foreign systems. Both US and Chinese government officials have approved the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for his role in facilitating the deal. The resolution allows millions of creators who organized against the ban to continue building their careers and businesses on the platform.