Social media platform TikTok has reached an agreement with investors to launch an independent US entity, enabling it to avoid a ban in the United States after years of wrangling over its fate.
The embattled short-video platform, which is used by more than 200 million Americans and 7.5 million businesses, announced the joint-venture deal in a statement on Thursday.
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The agreement establishes a US version of TikTok, which will be controlled by investment companies, many of which are American companies, and several linked to US President Donald Trump.
TikTok has been beset by troubles since 2024, when lawmakers, under the Joe Biden administration, passed legislation to force the platform to divest itself of its ownership by the Chinese internet company ByteDance.
Trump, who delayed the ban via an executive order when he assumed office in January 2025, praised this week’s deal. In a post on Truth Social early on Friday, Trump touted his role in “saving TikTok” and said the agreement marked a “very dramatic, final and beautiful conclusion”.
“It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump wrote.
“I only hope that long into the future I will be remembered by those who use and love TikTok,” the president added.
Trump has repeatedly praised the app for enabling him to reach a younger fan base during the campaign season.
Here’s what we know about how TikTok’s US entity will operate:
What happened at TikTok?
TikTok’s struggles in the US began in 2020, during Trump’s first term as president, when US authorities tried to force the app to divest from its Chinese parent company, ByteDance, after it was deemed a national security risk.
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Although Trump signed an executive order instructing ByteDance to hand control to US companies before his first term ended, the Biden administration reversed it.
The US had concerns about how ByteDance would handle data about US users, and whether China could pressure it to hand that data over.
There were also concerns that Beijing could influence the app’s powerful algorithm, which is revered for accurately suggesting content that keeps users engaged.
ByteDance and China have consistently denied that Beijing pressures companies to collect and hand over user data. But China has also insisted that TikTok and its algorithm must 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 specified that TikTok US should cut ties with ByteDance. TikTok sued the US government, but the US Supreme Court upheld the ban.
The platform voluntarily went offline for about 12 hours on January 18 – the day before the ban was due to come into effect. Its service was restored after then President-elect Trump confirmed that he would extend the deadline once he took office.
The president extended the deadline for 75 days via an executive order on January 20, the same day he was sworn in. He then signed executive orders periodically to continue putting off the ban.
In September, Trump said he had reached a deal with China that would allow TikTok to keep operating in the US. According to a December memo from TikTok’s Singaporean CEO Shou Zi Chew, US firms and other investors had signed agreements regarding a divestment plan.
What is the new TikTok deal?
The joint-venture agreement with new investors creates an independent US arm of TikTok – TikTok USDS Joint Venture LLC. USDS stands for US Data Security Inc.
Under the agreement, the new entity will separately secure and store US user data in line with US cybersecurity laws. “The majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users,” TikTok’s statement read.
The entity will safeguard US content “through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications,” it added.
TikTok added that the US division’s algorithm will be “retrained” on US user data. The company also said US creators will remain discoverable on a global scale.
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Additionally, TikTok US will oversee “certain commercial activities” such as e-commerce, advertising, and marketing in the US.
Adam Presser, who was most recently TikTok’s head of operations and trust and safety, will lead the entity 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 isn’t one single owner as the company has been created under a joint venture with multiple investors.
ByteDance will retain a 19.9 percent stake in the venture, despite the fact that the 2024 Biden-era law specified that TikTok US cut ties with the company.
Three investor companies each hold a 15 percent stake:
- Silver Lake – A US private equity firm focused on tech investments and with branches in London, Hong Kong and Singapore. It is chaired by Kenneth Hao. 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. It is chaired by billionaire Larry Ellison, a longtime ally of Trump.
- MGX – The UAE-owned investment firm specialising in artificial intelligence (AI) technology, which is chaired by the country’s national security adviser, Tahnoun bin Zayed Al Nahyan
There are eight other investors, including:
- Dell Family Office, owned by Michael Dell, founder of Dell Technologies and a Trump ally
- Vastmere Strategic Investments, an affiliate of Susquehanna International Group, founded by Trump ally Jeff Yass
- Alpha Wave, a global investment company
- Revolution, owned by Steve Case, founder of AOL
- Merritt Way, managed and controlled by San Francisco-based investment firm Dragoneer
- Via Nova
- Virgo Li Inc
- NJJ Capital
China has not commented specifically on the latest announcement.
Liu Pengyu, the spokesperson of the Chinese embassy in Washington, told reporters on Thursday, in advance of the deal becoming public, that “China’s position on TikTok has been consistent and clear”, but did not go further.
However, Trump signalled that Chinese President Xi Jinping was on board with the agreement when he praised his counterpart in his Truth Social statement on Friday.
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal,” Trump wrote.
“He could have gone the other way, but didn’t, and is appreciated for his decision,” he added.
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