TikTok Escapes US Ban with Groundbreaking 80% American Ownership Deal

TikTok has successfully avoided a nationwide ban in the United States by finalizing a historic restructuring deal that establishes a new majority American-owned entity. The announcement made on Thursday marks the end of a five-year saga that began when former President Donald Trump first threatened to ban the popular social media platform during his initial term in office.
Under the finalized agreement, ByteDance, the Chinese parent company of TikTok, will retain only 19.9% ownership of the new US entity. The remaining 80.1% will be controlled by prominent American investors, including tech giant Oracle led by Larry Ellison, private equity powerhouse Silver Lake, and Abu Dhabi’s sovereign wealth fund MGX. Each of these three major investors will hold a 15% stake in the restructured company, with additional investment coming from Michael Dell’s investment firm.
The deal comes after years of intense negotiations and legal battles over national security concerns. Congress passed legislation in 2024 requiring TikTok to find an American buyer or face a complete ban, citing fears that the Chinese government could potentially access American user data through the platform. The Supreme Court upheld this law in January 2025, but President Trump issued executive orders delaying enforcement while negotiations continued.
Adam Presser, who previously served as TikTok’s general manager and global head of operations, trust, and safety, will lead the new American entity as CEO. The company will operate under a seven-member board of directors with a majority of American cybersecurity and national security experts, including current TikTok CEO Shou Chew. The new structure promises comprehensive data protections, algorithm security enhancements, and content moderation specifically designed for US users.
President Trump celebrated the agreement on social media, thanking Chinese President Xi Jinping for approving the deal. The resolution brings relief to millions of American content creators and influencers who depend on the platform for their livelihoods. The new TikTok entity has committed to retraining its content recommendation algorithm using exclusively US user data, addressing longstanding concerns about foreign influence and data security.