TikTok has reached an agreement to continue operating in the United States, ending years of uncertainty over its future as Washington raised repeated national security concerns about the app’s Chinese parent, ByteDance.
The deal formalises the separation of TikTok’s US business from its global operations and comes after prolonged negotiations following threats of a nationwide ban under legislation passed in 2024.
US lawmakers had argued that ByteDance could be compelled by Beijing to share American user data, claims both the company and its parent repeatedly denied, heightening regulatory scrutiny.
TikTok’s Chinese owner, ByteDance, on Thursday said it has finalized a deal to establish a majority American-owned joint venture to secure U.S. user data and continue operating the app in the country.
Under the arrangement, TikTok’s recommendation algorithm, central to the app’s content delivery, will be licensed to TikTok USDS Joint Venture LLC and retrained using only US user data, which will be stored securely in the United States.
The platform will be independently managed by a seven-member board with a majority of American directors. Adam Presser, formerly of WarnerMedia, has been appointed chief executive. “This structure ensures operational independence and US-based governance,” the company said.
Ownership of the US business is divided among several investors. Oracle, Silver Lake, and Abu Dhabi-based tech firm MGX each hold 15% stakes, while ByteDance retains 19.9%. Oracle will oversee data security and algorithm management within its US cloud infrastructure.
Remaining shares are held by affiliates of Michael Dell and Susquehanna International Group. TikTok’s global CEO, Shou Zi Chew, will also join the board, maintaining oversight of corporate strategy across markets.
Analysts note that the US-only algorithm may change how TikTok functions for Americans. While the platform is expected to comply with US regulations, “the full impact on content recommendations and performance remains uncertain,” experts say.
