TikTok Closes American Entity Deal Following Years of ByteDance Negotiations

TikTok announced Thursday the successful conclusion of negotiations that began years ago, finalizing a deal that establishes a majority American-owned entity and allows ByteDance to maintain a financial stake while relinquishing operational control. The agreement marks the end of prolonged discussions between Chinese and American interests.
The finalized ownership structure reduces ByteDance to a 19.9% minority stake through negotiations that intensified over the past year, while American investors collectively hold 80.1% of the new US-based company. The American ownership consortium features three equal partners at 15% each: Oracle, the technology infrastructure and cloud computing company; Silver Lake, a major private equity firm focused on technology sector investments; and MGX, an investment fund based in Abu Dhabi. The investment firm associated with billionaire Michael Dell also participates.
This settlement stems from congressional legislation passed in 2024 that required TikTok to divest from operational Chinese control or face prohibition from American digital platforms. The law reflected bipartisan concern about national security vulnerabilities, with ByteDance facing pressure to negotiate terms that would satisfy US requirements while preserving some financial interest in the valuable American market. The Supreme Court validated the ban in January 2025, intensifying negotiation timelines.
The restructured American TikTok will be led by Adam Presser as CEO, a choice that leverages his institutional knowledge while representing new American leadership. Strategic oversight will be provided by a seven-person board of directors, deliberately constructed with an American majority and filled with cybersecurity and national security experts. Current TikTok CEO Shou Chew will join the board, representing continuity in the transition from ByteDance operational control.
The company has outlined specific protective measures for American users developed through the negotiation process, including comprehensive data protection systems, algorithm security protocols, enhanced content moderation capabilities, and software integrity assurances. The platform’s content recommendation algorithm will undergo complete retraining based exclusively on US user data, with rigorous testing and continuous updates to ensure independence. Both US and Chinese government officials have approved the final negotiated arrangement, with President Trump publicly expressing thanks to Chinese President Xi Jinping for his role in reaching the agreement.