TikTok Finalizes Deal to Launch U.S. Version, Avoiding Ban

TikTok has officially struck a deal to create a new U.S.-based version of its app, bringing an end to years of uncertainty over whether the platform would be banned in the United States. The agreement allows TikTok to keep operating for its more than 200 million American users.

Under the deal, TikTok will form a new U.S. joint venture backed by major investors including Oracle, Silver Lake, and Abu Dhabi based investment firm MGX. The company said the new entity will operate with strict safeguards designed to address U.S. national security concerns, including enhanced data protection, algorithm security, content moderation, and software oversight. For users, the experience won’t change the same TikTok app will continue to function as usual.

Former President Donald Trump celebrated the agreement in a post on Truth Social, thanking Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal.” Trump also said he hopes to be remembered by TikTok users for helping keep the app alive in the U.S.

The new U.S. venture will be led by Adam Presser, TikTok’s former head of operations and trust and safety. He’ll serve as CEO and work with a seven-member board of directors, the majority of whom are American. TikTok CEO Shou Chew will also sit on the board.

The agreement resolves a long-running political battle over TikTok’s ownership. Last year, Congress passed bipartisan legislation—signed by then-President Joe Biden that required TikTok to divest from its Chinese parent company, ByteDance, or face a nationwide ban by January 2025. TikTok briefly went offline as the deadline approached, but Trump signed an executive order on his first day back in office allowing the app to continue operating while negotiations were finalized.

A major focus of the deal is data security. U.S. user data will be stored domestically and managed through systems run by Oracle. The company also announced plans to retrain and update TikTok’s recommendation algorithm using U.S. user data a key issue in past security concerns.

The algorithm has long been at the center of the debate. U.S. lawmakers argued that ByteDance’s control over TikTok’s recommendation system posed a national security risk, while China previously insisted the algorithm remain under Chinese control. Under the new arrangement, ByteDance will retain a minority stake and license the algorithm to the U.S. entity for retraining, though legal questions remain about how much involvement is permitted under U.S. law.

“Who controls TikTok in the U.S. has a lot of sway over what Americans see on the app,” said Anupam Chander, a law and technology professor at Georgetown University.

Oracle, Silver Lake, and MGX will each hold a 15% stake in the new venture. Other investors include the investment firm of Dell Technologies founder Michael Dell. ByteDance will retain a 19.9% ownership stake.