TikTok has agreed to a landmark restructuring deal that reshapes who controls its US operations, ending years of legal uncertainty and political pressure over data privacy and national security concerns.
The popular short-video app, used by more than 200 million Americans and 7.5 million US businesses, will now operate through a newly created independent entity in the United States. The agreement allows TikTok to continue operating in the country and avoids an outright ban that had been looming since early 2025.
The move follows prolonged scrutiny from US lawmakers, multiple court challenges, and negotiations involving American investors, global firms, and political leaders.
Why TikTok Faced a Potential US Ban
Concerns surrounding TikTok’s ownership date back to 2020, when US officials first raised alarms about the app’s Chinese parent company, ByteDance, and the possibility that US user data could be accessed by the Chinese government.
Although ByteDance and Chinese authorities have consistently denied these claims, US lawmakers remained unconvinced—particularly about:
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User data privacy
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Foreign influence over TikTok’s recommendation algorithm
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National security risks linked to China’s technology laws
In April 2024, the US Congress passed legislation requiring ByteDance to divest TikTok’s US operations or face a nationwide ban by January 19, 2025. The Supreme Court later upheld the law.
TikTok briefly shut down operations in the US in January 2025, before President Donald Trump, newly sworn in, delayed enforcement through executive orders while negotiations continued.
What Is the New TikTok US Deal?
The new agreement establishes a joint venture called:
TikTok USDS Joint Venture LLC
(USDS stands for US Data Security Inc.)
This entity will operate independently from ByteDance and manage TikTok’s US platform under stricter data protection and governance standards aligned with US law.
According to TikTok, the new structure includes:
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Separate storage of US user data
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Enhanced cybersecurity controls
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Independent content moderation
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Transparency reporting and third-party audits
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Algorithm retraining using US user data
TikTok also confirmed that US creators will continue to reach global audiences, while commercial operations such as advertising and e-commerce will now be overseen domestically.
Leadership and Governance
The new US entity will be led by Adam Presser, TikTok’s former head of operations and trust & safety, who becomes CEO of TikTok US.
The governance structure includes:
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A seven-member board
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A majority of American board members
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Participation from TikTok’s global CEO Shou Zi Chew
This setup is designed to demonstrate operational independence while maintaining continuity for users and creators.
Who Owns TikTok US Now?
TikTok US does not have a single owner. Instead, ownership is distributed among multiple investors through the joint venture.
Ownership Breakdown
| Investor | Stake (%) | Notes |
|---|---|---|
| ByteDance | 19.9% | Retains minority stake |
| Silver Lake | 15% | US-based private equity firm |
| Oracle | 15% | US cloud provider storing TikTok data |
| MGX (UAE) | 15% | AI-focused investment firm |
| Other Investors (8 firms) | Remaining | Mix of US and global firms |
Key Additional Investors
| Investor | Background |
|---|---|
| Dell Family Office | Owned by Michael Dell |
| Vastmere Strategic Investments | Linked to Susquehanna International Group |
| Alpha Wave | Global investment firm |
| Revolution | Founded by AOL founder Steve Case |
| Merritt Way | Managed by Dragoneer |
| Via Nova | Private investment firm |
| Virgo Li Inc | Investment holding company |
| NJJ Capital | European investment group |
How This Addresses US Security Concerns
TikTok says the new structure ensures that:
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US data is stored and secured domestically
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Algorithms are shielded from foreign influence
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Content moderation follows US standards
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Operations are auditable and transparent
Oracle, which has stored TikTok’s US data since 2022, will continue to play a central role in infrastructure and compliance.
Political Reactions in the US
President Donald Trump publicly praised the agreement, calling it a successful resolution that preserved TikTok for American users while addressing national security issues.
Trump has repeatedly highlighted TikTok’s role in helping him connect with younger voters and described the deal as a win for US investors and creators.
What Has China Said About the Deal?
China has not formally commented on the finalized agreement.
However, prior to the announcement, a spokesperson from the Chinese Embassy in Washington reiterated that China’s position on TikTok has remained consistent, without offering details.
President Trump later suggested that Chinese President Xi Jinping had approved the arrangement, thanking him publicly for cooperation—though no official confirmation has come from Beijing.
What This Means for TikTok Users and Creators
For US users, the deal means:
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Continued access to TikTok
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No immediate changes to the app experience
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Greater oversight of data protection
For creators and businesses, it offers stability after years of uncertainty, ensuring that advertising, e-commerce, and monetization tools remain available in the US market.
Conclusion
The creation of TikTok USDS marks a significant turning point in the global debate over technology, data sovereignty, and national security. While questions remain about long-term geopolitical implications, the deal provides a clear operational path forward for TikTok in the United States.
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