Social media platform TikTok has reached an agreement with investors to create a separate U.S. corporation, allowing it to avoid a ban in the U.S. after years of dispute over its fate.
The struggling short video platform, used by more than 200 million Americans and 7.5 million businesses, announced the joint venture agreement in a statement Thursday.
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The agreement establishes a U.S. version of TikTok that will be managed by investment firms, many of which are American companies, some with ties to U.S. President Donald Trump.
TikTok has been in trouble since 2024, when lawmakers under President Joe Biden’s administration passed a bill that would force the sale of its ownership by Chinese internet company ByteDance.
President Trump, who delayed the ban by executive order when he took office in January 2025, praised this week’s agreement. In a post on Truth Social early Friday morning, President Trump emphasized his role in “saving TikTok” and called the deal a “very dramatic, final and beautiful conclusion.”
“This organization will now be owned by the largest group of great American patriots and investors in the world, and it will be an important voice,” President Trump wrote.
“I just want to use TikTok to make sure that my loved ones remember me forever,” the president added.
President Trump has repeatedly praised the app for reaching a younger fan base during the campaign.
Here’s what we know about how TikTok’s U.S. entity will operate.
What happened with TikTok?
TikTok’s struggles in the U.S. began in 2020, during President Trump’s first term. At the time, U.S. authorities tried to force the sale of the app from its Chinese parent company ByteDance, deeming it a national security risk.
Before the end of his first term, President Trump signed an executive order directing ByteDance to transfer control to a U.S. company, but the Biden administration rescinded the order.
The US had concerns about how ByteDance would handle data about US users and whether China could pressure it to hand over that data.
There were also concerns that the Chinese government could influence the app’s powerful algorithms. The algorithm is revered for accurately suggesting content that will engage users.
ByteDance and China have consistently denied that the Chinese government pressures companies to collect or hand over user data. But China also insists that TikTok and its algorithms should remain under Chinese control.
In April 2024, Congress passed legislation that would ban TikTok in the United States if ByteDance fails to sell its U.S. operations to a U.S. owner by January 19, 2025. The law stipulated that TikTok US must sever 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 took effect. Services resumed after then-President-elect Donald Trump confirmed that the deadline would be extended after he took office.
The president extended the deadline by 75 days through an executive order on January 20, the day he was sworn into office. After that, he continued to periodically sign executive orders and postpone the ban.
President Trump said in September that he had reached an agreement with China that would allow TikTok to continue operating in the United States. A December memo from TikTok’s Singaporean CEO Shou Zi Chew said the U.S. company and other investors had signed an agreement on a planned sale.
What is TikTok’s new deal?
The joint venture agreement with new investors creates TikTok’s independent U.S. arm, TikTok USDS Joint Venture LLC. USDS stands for US Data Security Inc.
Under the agreement, the new organization will separately secure and store user data in the United States in accordance with U.S. cybersecurity laws. “The majority U.S.-owned joint venture will operate under defined safeguards that protect national security through comprehensive data protection, algorithmic security, content moderation, and software assurance for U.S. users,” TikTok’s statement said.
The group added that it protects U.S. content “through robust trust and safety policies and content moderation, while ensuring continued accountability through transparency reporting and third-party certification.”
TikTok added that its US division’s algorithms will be “retrained” based on US user data. The company also said that U.S. creators will continue to be discoverable on a global scale.
In addition, TikTok US will oversee “certain commercial activities” such as e-commerce, advertising, and marketing in the United States.
Adam Presser, who most recently served as TikTok’s head of operations and trust and safety, will lead the organization as CEO. He will work with a majority American board of directors, a seven-member board that includes TikTok CEO Shou Zi Chew.
Who currently owns TikTok US?
The company was established under a joint venture with multiple investors, so there is no single owner.
ByteDance will retain a 19.9% stake in the venture, even though Biden-era legislation specifies that TikTok US will sever ties with the company in 2024.
Three investment companies each hold a 15% stake.
Silver Lake – American private equity firm focused on technology investments with offices in London, Hong Kong, and Singapore. The chairman is Kenneth Hao. Co-owner Egon Durban is a member of TikTok US’s board of directors. Oracle – A cloud computing company that has been storing TikTok US data since 2022. It is chaired by billionaire Larry Ellison, a longtime ally of President Trump. MGX – UAE-owned investment company specializing in artificial intelligence (AI) technology. It is chaired by Tanun bin Zayed Al Nahyan, the country’s national security adviser.
There are eight other investors:
Managed and controlled by the Dell Family Office, Vastmere Strategic Investments, owned by Dell Technologies founder and Trump ally Michael Dell, an affiliate of Susquehanna International Group, Alpha Wave, founded by Trump ally Jeff Yass, Revolution, a global investment firm owned by AOL Merit Way founder Steve Case, and San Francisco-based investment firm Dragonia Via Nova Virgo Lee, Inc.
What does China say about this agreement?
China has not commented specifically on this announcement.
“China’s position on TikTok is consistent and clear,” Liu Pengyu, a spokesperson for the Chinese embassy in Washington, told reporters Thursday ahead of the announcement of the agreement, but did not elaborate further.
However, President Trump suggested in Friday’s “Society of Truth” statement that Chinese President Xi Jinping was supportive of the deal.
“I also want to thank President Xi of China for working with us and ultimately approving the agreement,” Trump said.
“He could have chosen a different path, but he didn’t. I appreciate his decision,” he added.
