The TikTok deal reached a turning point Thursday as the social media platform finalized a Trump-backed agreement creating a majority American-owned joint venture, effectively sidestepping a potential U.S. ban. The move follows years of national security concerns raised by President Trump over Chinese control of the app and access to American user data.
TikTok announced the formation of TikTok USDS Joint Venture LLC, built on its existing U.S. Data Security framework. The structure complies with President Trump’s executive order signed Sept. 25, allowing continued operation for more than 200 million U.S. users and 7.5 million businesses. Under the TikTok deal, American entities now hold an 80.1% ownership stake, while China-based parent company ByteDance retains 19.9%.
“I am so happy to have helped in saving TikTok!” President Trump wrote on Truth Social. “It will now be owned by a group of Great American Patriots and Investors.” TikTok confirmed the joint venture “has been established in compliance with the Executive Order signed by President Trump.”
Oracle, Silver Lake, and Abu Dhabi-based MGX will serve as managing investors, each holding a 15% stake. Oracle will also host TikTok’s domestic cloud environment, securing U.S. user data and the content recommendation algorithm within American infrastructure. “The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment,” the company said.
The new entity will be overseen by a seven-member, majority-American board. Adam Presser was named chief executive officer, with board representation including TikTok CEO Shou Chew and executives from Oracle, Silver Lake, and MGX. TikTok said sister apps CapCut and Lemon8 will also fall under U.S. oversight.
The TikTok deal represents the most significant restructuring in the company’s history, reshaping ownership while keeping the platform operational in the United States.
