TikTok Strikes Deal to Stay in America with New US Entity — Ban Averted

TikTok has officially clinched a deal to keep its wildly popular app up and running in the United States by forming a new US-based company – putting to rest a years-long battle over national security concerns and a potential nationwide ban.

Under the new structure, called TikTok USDS Joint Venture LLC, a group of mostly American investors will take majority control of the US business, while China’s ByteDance – TikTok’s parent company – retains a smaller stake.

Here’s what’s up:

What the deal looks like

• The new US entity is now officially established and running.
• Oracle, Silver Lake and Abu Dhabi-based MGX are three key managing investors, each holding about 15% of the joint venture.
• Additional investors include firms connected to Michael Dell, Susquehanna International Group, Alpha Wave Partners and others.
• China’s ByteDance keeps a 19.9% share, the maximum allowed under US law, leaving it as the largest single non-US shareholder.

The new structure satisfies a US law passed in 2024 that required TikTok to divest its American operations or face an outright ban. After years of legal limbo – including a Supreme Court review and multiple deadline extensions – the deal means TikTok will continue to operate normally for its roughly 200 million American users without disappearing from US phones.

President Donald Trump, who delayed an outright ban to give negotiations space, publicly hailed the outcome, thanking Chinese President Xi Jinping for working toward an agreement.

Under the joint venture, TikTok’s US arm will focus on:

• Data protection – US user information will be stored in Oracle’s secure US cloud and undergo third-party audits.
• Algorithm security – the recommendation engine that drives TikTok’s wildly addictive feed will be retrained using US user data.
• Content moderation and safety – trust and safety policies will be governed by a majority American board of directors.

The joint venture’s leadership includes TikTok’s CEO Shou Zi Chew on the board and Adam Presser as CEO of the US entity.

Even with this deal, questions remain about how far US control really goes –especially around commercial operations like advertising, e-commerce and revenue streams that still tie back to TikTok’s global business. ByteDance’s minority ownership also means it retains some influence, although national security safeguards are now in place.

For now, the big takeaway is simple: TikTok avoided the threat of being booted from American app stores and local creators and users won’t have to find a replacement – at least for the near future.

This deal closes a long chapter of uncertainty and opens a new one where TikTok’s future in the US looks a lot more secure – just under a different set of owners and rules.