TikTok announced Thursday the successful finalization of an ownership restructuring that establishes a majority American-owned entity, preserving operations for a business ecosystem that includes millions of small businesses, advertisers, and e-commerce vendors who use the platform. The agreement protects economic interests beyond just content creators.
ByteDance, the Chinese technology conglomerate that created TikTok, has agreed to reduce its ownership stake to 19.9% in the American entity, while US investors assume controlling interest with 80.1%. Oracle, Silver Lake, and MGX share equal 15% stakes. Michael Dell’s investment firm participates.
This resolution addresses legislation that would have disrupted not just social media creators but an entire business ecosystem built around the platform. Small businesses use TikTok for marketing and customer acquisition, major brands allocate significant advertising budgets to the platform, and e-commerce vendors sell products directly through TikTok Shop. A ban would have eliminated these business opportunities and disrupted commerce for companies that invested in TikTok-based strategies.
Leadership of the American entity will be entrusted to Adam Presser as CEO, bringing experience managing the platform’s business operations alongside trust and safety functions. Oversight comes from a seven-member board with American majority and cybersecurity experts. Shou Chew participates as a board member.
The new US entity commits to implementing security safeguards while maintaining business continuity for the commercial ecosystem that depends on the platform. Protections include comprehensive data protocols, secured algorithms, enhanced moderation, and software integrity measures. The recommendation algorithm undergoes retraining using US user data while preserving the platform’s commercial functionality. Both governments have approved the arrangement, with President Trump noting the importance of preserving what he called an important voice, implicitly recognizing the platform’s business and commercial significance beyond just social entertainment.