TikTok Preserves US Presence Through Comprehensive Data Protection Framework

TikTok announced Thursday that it has completed a landmark ownership restructuring establishing a majority American-owned entity, successfully avoiding a federal ban that threatened to end its operations in the United States. The deal represents the culmination of years of negotiations addressing national security concerns about the Chinese-owned platform.
The finalized ownership structure reduces ByteDance to a 19.9% minority stake in the American TikTok entity, while US investors collectively hold 80.1% of the company. The American ownership consortium features three equal partners at 15% each: Oracle, the technology infrastructure and cloud computing leader; Silver Lake, a prominent private equity firm specializing in technology sector investments; and MGX, an investment fund from Abu Dhabi. The investment firm of Michael Dell, founder of Dell Technologies, also participates.
This resolution stems from legislation passed by Congress in 2024 with overwhelming bipartisan support, requiring TikTok to divest from Chinese ownership or cease American operations. The law reflected concern among policymakers and intelligence officials about data security vulnerabilities and potential foreign influence over the platform’s algorithms. The Supreme Court validated the ban in January 2025, after which President Trump employed executive authority to delay enforcement while facilitating ongoing negotiations.
The restructured American TikTok will be led by Adam Presser as CEO, utilizing his extensive institutional knowledge from previous senior leadership roles with the company. Strategic oversight will be provided by a seven-person board of directors, deliberately constructed with an American majority and filled with cybersecurity and national security experts. Current TikTok CEO Shou Chew will join the board, ensuring continuity and coordination.
The company has outlined specific protective measures for the US platform, including comprehensive data protection systems, algorithm security protocols, enhanced content moderation capabilities, and software integrity assurances designed specifically for American users. The platform’s content recommendation algorithm will undergo complete retraining based solely on US user data, with rigorous testing and continuous updates to maintain independence from foreign influence. Both American and Chinese government officials have approved the deal, with President Trump publicly thanking Chinese President Xi Jinping for his role in facilitating the arrangement, which brings relief to millions of content creators and influencers who depend on the platform.