The popular video-sharing platform TikTok has finalised a crucial agreement to maintain its operations within the United States, effectively ending years of political and regulatory uncertainty that threatened its future in one of its largest markets.
New Joint Venture Structure
TikTok has established a new majority American-owned joint venture that will oversee its US operations under what the company describes as defined safeguards designed to protect national security interests. This strategic move comes after prolonged negotiations and executive actions that have shaped the platform's fate in America.
Political Background and Timeline
The agreement follows US President Donald Trump signing an executive order in September 2025 that allowed TikTok to continue operating while paving the way for this spin-off arrangement. This development represents a significant shift from previous legislative actions, including legislation signed by former president Joe Biden in 2024 that had called for TikTok's Chinese owner ByteDance to sell the platform's assets to an American company by early 2025 or face a nationwide prohibition.
President Trump, who assumed office a year ago, repeatedly signed orders permitting the app to remain active while his administration worked toward reaching a permanent agreement that would satisfy national security concerns.
Data Security and Operational Details
TikTok announced on Friday that its American users will benefit from comprehensive data privacy and cybersecurity measures that will secure their personal data, applications, and content recommendation algorithms. The cloud software platform Oracle has been designated as responsible for storing the data of TikTok's substantial user base, which exceeds 200 million American accounts.
Ownership and Governance Structure
The newly formed joint venture is owned by a consortium of prominent investors including Larry Ellison's Oracle, technology investment giant Silver Lake, the investment firm of Dell founder Michael Dell, and Abu Dhabi's AI and technology investor MGX. Notably, ByteDance will retain a minority stake of 19.9% in the spin-off entity.
The venture will operate as an independent entity guided by a seven-member board of directors that includes TikTok's chief executive Shou Chew alongside executives from Oracle and Silver Lake. Adam Presser, formerly vice president of Warner Bros and TikTok's head of operations and trust and safety, will assume the role of chief executive for the joint venture.
Algorithm Concerns and Resolution
The agreement concludes years of uncertainty surrounding the social media platform's future in the United States, where it delivers a continuous stream of video content tailored to individual user interests and viewing history. The algorithm powering this personalised content delivery has been a central point in the security debate about TikTok, with American officials previously warning about its potential vulnerability to manipulation by Chinese authorities, though no concrete evidence was presented demonstrating such attempts had occurred.
This resolution represents a significant compromise that addresses national security concerns while allowing the popular platform to continue serving its massive American user base under new ownership and governance structures designed to provide greater transparency and security assurances.
