TikTok Successfully Navigates US Ban by Creating Majority-American-Owned Venture
In a significant move, TikTok's Chinese parent company ByteDance has finalized a deal to establish a new US entity, sidestepping the ban imposed on the popular social media platform. The agreement allows TikTok to operate in the US with increased safeguards, including comprehensive data protections and algorithm security.
Under the arrangement, a majority of TikTok's operations will be owned by an American venture led by Larry Ellison's Oracle, private-equity group Silver Lake, and Abu Dhabi-based MGX, which hold 80.1% of the new entity. ByteDance will retain 19.9%. The deal marks the end of a long-standing legal battle over TikTok's future in the US.
The ban on TikTok was first threatened by former President Donald Trump during his first term, with Congress passing a law in 2024 that required a US buyer for the platform to remain operational. The Supreme Court upheld the law in January 2025, but Trump delayed its enforcement while negotiations were underway between the US, TikTok, and potential American partners.
The new venture will be overseen by a seven-member board of directors, including cybersecurity experts from Oracle, Silver Lake, MGX, and Shou Zi Chew, TikTok's CEO. The company has committed to retraining and updating its content recommendation algorithm using US user data to ensure it is free from outside manipulation.
TikTok's US entity will be subject to "defined safeguards that protect national security," according to the announcement. The deal comes after concerns over user data security and fears that China could use the platform to harvest data from American users, claims which TikTok has repeatedly denied.
The agreement has been welcomed by the White House, with a spokesperson confirming that the Chinese and US governments have signed off on the deal. Former President Trump expressed gratitude for China's president Xi Jinping's cooperation in securing the agreement, saying it will be "an important Voice" under new American ownership.
In a significant move, TikTok's Chinese parent company ByteDance has finalized a deal to establish a new US entity, sidestepping the ban imposed on the popular social media platform. The agreement allows TikTok to operate in the US with increased safeguards, including comprehensive data protections and algorithm security.
Under the arrangement, a majority of TikTok's operations will be owned by an American venture led by Larry Ellison's Oracle, private-equity group Silver Lake, and Abu Dhabi-based MGX, which hold 80.1% of the new entity. ByteDance will retain 19.9%. The deal marks the end of a long-standing legal battle over TikTok's future in the US.
The ban on TikTok was first threatened by former President Donald Trump during his first term, with Congress passing a law in 2024 that required a US buyer for the platform to remain operational. The Supreme Court upheld the law in January 2025, but Trump delayed its enforcement while negotiations were underway between the US, TikTok, and potential American partners.
The new venture will be overseen by a seven-member board of directors, including cybersecurity experts from Oracle, Silver Lake, MGX, and Shou Zi Chew, TikTok's CEO. The company has committed to retraining and updating its content recommendation algorithm using US user data to ensure it is free from outside manipulation.
TikTok's US entity will be subject to "defined safeguards that protect national security," according to the announcement. The deal comes after concerns over user data security and fears that China could use the platform to harvest data from American users, claims which TikTok has repeatedly denied.
The agreement has been welcomed by the White House, with a spokesperson confirming that the Chinese and US governments have signed off on the deal. Former President Trump expressed gratitude for China's president Xi Jinping's cooperation in securing the agreement, saying it will be "an important Voice" under new American ownership.
tiktok is literally saving its skin and now we get to see if this new american venture thing actually works 
i mean on one hand, its cool that they're getting american ownership and all but like how do we know the data is safe lol? 
at least the new algo will be based on us user data tho 
so fingers crossed it won't get hacked again 
. I mean, Oracle and Silver Lake are legit companies but still, they own 80% of the new entity... what's to stop them from making some shady deals 
? And btw, how much data will they actually be sharing w/ US users? 
. need more info on this one 
. I mean, the whole thing was so tense and uncertain - but I guess it all worked out in the end. What really gets me is how much control Oracle and Silver Lake are taking over TikTok's operations 
. Can't wait to see how this new venture shakes things up! 
. Now we've got this new US entity thingy, and let me guess what that means... more complexity, more data tracking, and probably more algorithms being tweaked to keep us scrolling mindlessly 
. And what's up with the "defined safeguards" claim? Sounds like a PR stunt to me. I mean, don't get me wrong, I'm happy for Larry Ellison and Oracle and whoever else is raking it in, but can we just have a genuine conversation about online safety without all the spin? 
I mean have you guys ever seen that? It's like it's trying to jam out to its own tune or something lol anyway, back to TikTok... so like, what's up with the new US entity deal? I guess it's cool that they're bringing in American investors and stuff but I'm still not sure if I trust them 
80% ownership by American partners is a big deal, it shows they're serious about getting their act together. Data security is a huge concern these days, so I'm glad they're taking steps to protect users' info. It's just good business sense 
Can't say I'm surprised either – tech companies need to adapt to stay relevant 
think about it, oracle and silver lake are like the ultimate us corporate babysitters, so who really owns the platform now? 80% of the new entity is owned by these guys, but still tiktok makes most of the cash. i mean, at least they agreed to be more transparent with user data... kinda late though 
. Like seriously, a majority-American owned venture? That's just a fancy way of saying 'US government owns your soul' 
. Anyway, this new US entity thing sounds legit so far... 80% owned by American companies is a big chunk 
. How's everyone feeling about this deal? 
.
... I mean, can't TikTok just own its own US entity? And what's with this majority-American-owned venture? Does it really matter who owns the platform as long as they're keeping our data safe? 
But don't we want to keep an eye on how this new entity operates and makes sure it's not just another Chinese company in disguise?