TikTok said Thursday it struck a deal which turns the app’s U.S. operations to a group of non-Chinese investors — thwarting the overhanging threat of a nationwide ban.
Following a yearslong legal saga — including a temporary ban by Congress — a group of investors finalized a deal with the app’s Chinese owner, ByteDance, to establish a new American entity, loosening the app’s ties to China and alleviating concerns over its national security risks.
Major investors in the venture include software titan Oracle, the investment firm Silver Lake and the Emirati investment firm MGX. Adam Presser, the former head of operations for TikTok, was named CEO and Will Farrell, a former head of security at TikTok, will serve as chief security officer.
ByteDance, TikTok’s China-based owner, will retain a 19.9% stake in the venture.
The deal enables more than 200 million Americans and 7.5 million U.S. business to continue safely using the platform.
“The majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,” the group said in a statement Thursday.
The U.S. operation will be overseen by a seven-member board of directors, the majority of which are American, including TikTok CEO Shou Chew; Egon Durban, the co-CEO of Silver Lake; Kenneth Glueck, the executive vice president in the office of the CEO at Oracle; David Scott, the chief strategy and safety officer at MGX; and others.
Late Thursday, President Donald Trump thanked Chinese President Xi Jinping for “working with us and, ultimately, approving the deal,” noting that he is “appreciated for his decision,” in a Truth Social post.
Trump also took a moment to celebrate the venture and pat himself on the back for his role in the outcome.
“I am so happy to have helped in saving TikTok!” he wrote. “It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice. Along with other factors, it was responsible for my doing so well with the Youth Vote in the 2024 Presidential Election.”
He added, “I only hope that long into the future I will be remembered by those who use and love TikTok.”
