TikTok has finalised a long-awaited deal that will allow the short-video platform to continue operating in the United States, ending years of uncertainty over its future in the country.
The announcement was made on Thursday, following prolonged tensions between Washington and Beijing over national security concerns linked to TikTok’s Chinese parent company, ByteDance.
US authorities had repeatedly warned that the app could be banned if ByteDance failed to divest its US operations, citing fears that the Chinese government could gain access to American users’ data — allegations both TikTok and ByteDance have consistently denied.
The push to restrict TikTok began during President Donald Trump’s first term in office and later gathered momentum under former President Joe Biden.
In 2024, Biden signed legislation compelling ByteDance to sell TikTok’s US business or face a ban. This triggered a legal battle between the company and the US government.
In January 2025, TikTok briefly went offline in the US for several hours before services were restored after Trump, then president-elect, pledged to reverse the ban.
Last September, Trump announced that an understanding had been reached to keep TikTok running in the US, while binding agreements with American and global investors were signed in December.
Under the newly finalised arrangement, TikTok’s US operations will now be run by an independent entity known as TikTok USDS Joint Venture LLC.
The company said the new structure is designed to safeguard US user data, apps and algorithms through enhanced data privacy and cybersecurity measures.
Reacting to the development, President Trump wrote on social media that he was “so happy to have helped in saving TikTok”.
TikTok disclosed that the joint venture will be governed by a seven-member board, with a majority of American directors.
Adam Presser, a former WarnerMedia executive, has been appointed Chief Executive Officer of the new entity.
Ownership of the US business will be shared among American and global investors, with Oracle, Silver Lake and Abu Dhabi-based technology investor MGX each holding 15 per cent stakes.
ByteDance will retain a minority 19.9 per cent stake, while the remaining shares will be held by other investors, including entities linked to tech billionaire Michael Dell and Susquehanna International Group.
Oracle will also be responsible for securing the data of American TikTok users and overseeing changes to the app’s content recommendation algorithm.
TikTok’s global Chief Executive Officer, Shou Zi Chew, will sit on the board alongside representatives of Oracle, Silver Lake and MGX.
With the deal now concluded, TikTok has, for the moment, averted the threat of a shutdown in the United States.
