TikTok has officially completed the restructuring of its US operations, with its parent company, ByteDance, finalizing the sale of a majority stake to a consortium of non‑Chinese investors. The transaction was wrapped up just ahead of the Trump Administration’s most recent deadline, which would have banned the app in the United States unless ownership was separated from ByteDance. Under the finalized agreement, ByteDance will retain only a 20 percent minority stake in the newly formed US entity.
The remaining 80 percent ownership will be held by TikTok’s existing international investors. Among the largest shareholders in the new structure are Oracle, Silver Lake, and MGX, an investment firm owned by the government of the United Arab Emirates, each of which will control approximately 15 percent. Additional backing comes from other major stakeholders, including the investment arm of Dell Technologies’ CEO.
News of the agreement first surfaced last month, following reports that TikTok CEO Shou Chew had informed employees via an internal memo that TikTok and ByteDance had secured a commitment from a consortium of investors. This development marks the end of a prolonged and often uncertain process, characterized by months of complex negotiations. It ultimately ensures that TikTok will continue operating in the United States, despite years of political pressure and the constant threat of an outright ban.
According to TikTok’s formal announcement, the newly created joint venture is designed to safeguard the data of US users by hosting the platform entirely within Oracle’s secure American cloud infrastructure. This entity will also retrain TikTok’s recommendation algorithm using data sourced solely from US users and will assume full control of content moderation within the country. Beyond data protection, the joint venture emphasizes continued interoperability, ensuring that American users will still have access to international content and that US‑based creators will retain visibility with global audiences.
TikTok added that these protections will extend beyond its flagship platform, covering other ByteDance-owned products available in the United States, including CapCut, Lemon8, and additional apps and websites, all of which will operate under the same data and security safeguards implemented through the new US-based structure.
