TikTok has finalised a $14 billion agreement to establish a U.S.-based subsidiary, successfully averting a nationwide ban on the popular video-sharing platform.
Under the new ownership structure, U.S. private equity firm Silver Lake, Abu Dhabi-based artificial intelligence company MGX, and tech giant Oracle will each hold a 15 per cent stake in the joint venture. TikTok’s Beijing-based parent company, ByteDance, will retain just under a 20 per cent stake, while the Dell Family Office—linked to Dell Technologies chairman and CEO Michael Dell—will also participate.
The deal follows legislation passed by the U.S. Congress in April 2024, which required TikTok to be sold to American owners by January 19, 2025, or face a ban over national security concerns related to its Chinese ownership. President Donald Trump delayed enforcement of the ban multiple times while negotiations continued and signed an executive order in September approving the deal framework.
In line with an internal memo from TikTok CEO Shou Zi Chew last month, the agreement was concluded this week. TikTok’s U.S. operations will now function as an independent entity governed by a seven-member board, including Chew, Oracle executive Kenneth Glueck, Silver Lake co-CEO Egon Durban, MGX chief strategy and safety officer David Scott, and other senior industry figures.
Adam Presser, TikTok’s head of operations and trust and safety, will serve as chief executive officer of the new U.S. joint venture.
President Trump welcomed the development on Truth Social, describing it as a win for American investors and the platform’s future in the United States. He also claimed Chinese President Xi Jinping approved the agreement, thanking him for his cooperation.
While Trump has characterised the arrangement as a “qualified divestiture” that severs ByteDance’s control, Chinese officials have taken a more cautious stance, stressing that any deal must comply with Chinese laws and protect all parties’ interests.
U.S. lawmakers who previously raised security concerns say they will continue to scrutinise the agreement, particularly around surveillance risks and content manipulation. Vice President JD Vance noted that a key breakthrough was granting the U.S. entity control over TikTok’s algorithm.
According to TikTok, the U.S. platform will retrain and update its algorithm using American user data, with Oracle hosting and managing the system within its U.S.-based cloud infrastructure.
Despite the assurances, critics remain sceptical. Hudson Institute senior fellow Michael Sobolik argued that the deal still raises questions about China’s potential influence over the platform.
For now, the agreement keeps TikTok operational in the U.S. while reshaping its governance, data handling, and algorithmic control under American oversight.
