Social media platform TikTok has struck a deal with investors to launch a separate US entity, enabling it. Avoid the ban In the United States for many years fighting over his fate.
The chaotic short-video platform, used by more than 200 million Americans and 7.5 million businesses, announced the joint-venture agreement in a statement Thursday.
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The deal establishes a US version of TikTok, which will be controlled by investment firms, many of which are American companies and many of which are linked to US President Donald Trump.
TikTok has been plagued by crises since 2024, when lawmakers under the Joe Biden administration, Act passed Forcing the platform to divest itself of Chinese internet company ByteDance.
Trump, who delayed the ban by executive order when he took office in January 2025, praised this week’s agreement. Trump hit out in an early Friday post on Truth Social His role In “TikTok Saving” and the deal marked “a very dramatic, final and beautiful conclusion”.
“It will now be owned by a group of Great American patriots and investors, the largest in the world, and will have an important voice,” Trump wrote.
“I hope that in the future I will be remembered by those who use and love TikTok,” added the president.
Trump has repeatedly praised the app for reaching younger fans during the campaign season.
Here’s what we know about how TikTok’s US entity will work:
What happened to TikTok?
TikTok’s struggles in the US began in 2020 during Trump’s first term as president, when US officials tried to force the app to be taken away from its Chinese parent company, ByteDance, as a national security threat.
Although Trump signed an executive order instructing him to hand over control of ByteDance to American companies before the end of his first term, the Biden administration reversed it.
The US was concerned about how ByteDance would handle data about US users and whether China could pressure it to hand over that data.
There were also concerns that Beijing could influence the app’s powerful algorithm, which is revered for accurately suggesting content that engages users.
ByteDance and China have consistently denied that Beijing is pressuring the companies to collect and transfer user data. But China has also insisted that TikTok and its algorithm should remain under Chinese control.
In April 2024, Congress passed a law that would ban TikTok in the US if ByteDance failed to sell its US operations to US owners by January 19, 2025. The law requires TikTok US to sever ties with ByteDance. TikTok sued the US government, but also the US Supreme Court The ban was upheld.
The platform voluntarily went offline for about 12 hours on January 18 – the day before the ban was to take effect. His service was subsequently reinstated after President-elect Trump confirmed the extension after taking office.
The president extended the deadline by 75 days by executive order on January 20, the same day he was sworn in. He then periodically signed executive orders to maintain the ban.
Trump in September said He had a deal with China that would allow TikTok to continue in the US. According to a December memo from TikTok’s Singaporean CEO Shou Zhi Chew, US companies and other investors had signed agreements regarding the divestment plan.
What is the new TikTok deal?
The joint-venture agreement with the new investors creates a separate US branch of TikTok – TikTok USDS Joint Venture LLC. USDS stands for US Data Security Inc.
Under the agreement, the new entity will independently secure and store US user data in accordance with US cybersecurity laws. “The majority American-owned joint venture will operate under a defined security framework that protects national security through comprehensive data protection, algorithm security, content control and software assurances for US users,” TikTok’s statement read.
The organization will protect US content “by ensuring ongoing accountability through robust trust and security policies and content controls through transparency reporting and third-party certifications,” it added.
TikTok added that the US division’s algorithms will be “retrained” on US user data. The company also said that US manufacturers will remain globally traceable.
In addition, TikTok US will oversee “certain business activities” in the US, such as e-commerce, advertising and marketing.
Adam Presser, who was most recently TikTok’s head of operations and trust and safety, will lead the organization as CEO. He will work with a seven-member, majority American board that includes TikTok CEO Shou Zi Chew.
Who owns TikTok US now?
There is no single owner as the company is formed under a joint venture with several investors.
ByteDance will retain a 19.9 percent stake in the venture even though the 2024 Biden-era law stipulates that TikTok US sever ties with the company.
Three investor companies hold 15 percent each:
- Silver Lake – A US private equity firm focused on tech investments and has branches in London, Hong Kong and Singapore. Kenneth Hao presides. Egon Durban, a co-executive, is on the TikTok US board.
- Oracle – The cloud computing company that has been storing TikTok US data since 2022. Its chairman is billionaire Larry Ellison, a longtime Trump ally.
- MGX – a UAE-owned investment firm specializing in artificial intelligence (AI) technology, chaired by the country’s National Security Adviser, Tahnoon bin Zayed Al Nahyan.
There are eight other investors including:
- Dell Family Office, owned by Dell Technologies founder and Trump ally Michael Dell
- Vastmere Strategic Investments, an affiliate of Susquehanna International Group, was founded by Trump associate Jeff Yass.
- Alpha Wave is a global investment company
- A revolution owned by Steve Case, founder of AOL
- Merit Way, managed and controlled by Dragoneer, a San Francisco-based investment firm
- Via Nova
- Kanya Lee Inc
- NJJ Capital
What has China said on this deal?
China has not specifically commented on the latest announcement.
Liu Pengyu, a spokesman for the Chinese embassy in Washington, told reporters on Thursday before the deal was made public that “China’s position on TikTok is consistent and clear”, but did not go further.
However, Trump signaled his involvement in the deal while praising Chinese President Xi Jinping in his Truth Social statement on Friday.
“I want to thank President Xi of China for working with us and, ultimately, for ratifying the deal,” Trump wrote.
“He could have gone the other way, but he didn’t, and his decision is appreciated,” he added.