TikTok Reaches 80-20 Ownership Split Deal, Avoiding US Ban After Five-Year Battle

After five years of legal uncertainty and political maneuvering, TikTok has successfully completed a transformative ownership deal that allows the platform to continue operating in the United States. The announcement on Thursday revealed that American investors will control more than 80% of a newly established US entity, marking a dramatic shift in the company’s ownership structure.
The restructured ownership model reduces ByteDance’s control to a minority stake of 19.9%, while American investors collectively own 80.1% of the new company. Among the major stakeholders are Oracle, the enterprise technology corporation founded by Larry Ellison, along with Silver Lake, one of the world’s largest technology-focused private equity firms, and MGX, an investment vehicle from Abu Dhabi. The investment firm associated with Michael Dell, founder of Dell Technologies, is also participating in the venture.
This resolution addresses legislation passed by Congress in 2024 that effectively banned TikTok unless it secured American ownership. Lawmakers cited national security risks, particularly the theoretical possibility that the Chinese government could compel ByteDance to share data on American users. The legislation survived a Supreme Court challenge in January 2025, but President Trump used executive authority to delay implementation while facilitating negotiations between the parties.
The new American TikTok will be helmed by Adam Presser as chief executive officer, leveraging his extensive experience with the company’s operations and safety protocols. Strategic oversight will come from a seven-person board of directors, structured to have an American majority with expertise in protecting national security and cybersecurity infrastructure. Current TikTok CEO Shou Chew will serve as a board member, maintaining continuity with the platform’s existing leadership.
According to the company’s statement, the US entity will implement robust safeguards including enhanced data protection measures, secured algorithms, refined content moderation systems, and software assurances specifically for American users. The platform’s content recommendation system will be rebuilt and continuously refined using data exclusively from US users, addressing core concerns about foreign influence on American digital consumption patterns.