TikTok Finalizes Deal to Create New American Entity, Avoiding U.S. Ban...

Skip to main content HONG KONG, CHINA - JANUARY 18: In this photo illustration, the TikTok logo and flag of the United States are seen on screens on January 18, 2025 in Hong Kong, China. Anthony Kwan/Getty Images Trending on Billboard TikTok has finalized a deal to create a new American entity, avoiding the looming threat of a ban in the United States that has been in discussion for years. The social video platform company signed agreements with major investors including Oracle, Silver Lake and MGX to form the new TikTok U.S. joint venture. The new version 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 company said in a statement Thursday. American TikTok users can continue using the same app. INXS, AC/DC, GANGgajang Lead Triple M's Most Played Songs in Network History Jessica Lynch Adam Presser, who previously worked as TikTok’s head of operations and trust and safety, will lead the new venture as its CEO. He will work alongside a seven-member, majority-American board of directors that includes TikTok’s CEO Shou Chew. The deal marks the end of years of uncertainty about the fate of the popular video-sharing platform in the United States. After wide bipartisan majorities in Congress passed — and President Joe Biden signed — a law that would ban TikTok in the U.S. if it did not find a new owner in the place of China’s ByteDance, the platform was set to go dark on the law’s January 2025 deadline. For a several hours, it did. But on his first day in office, President Donald Trump signed an executive order to keep it running while his administration sought an agreement for the sale of the company. In addition to an emphasis on data protection, with U.S. user data being stored locally in a system run by Oracle, the joint venture will also focus on TikTok’s algorithm. The content recommendation formula, which feeds users specific videos tailored to their preferences and interests, will be retrained, tested and updated on U.S. user data, the company said in its announcement. Oracle, Silver Lake and the Emirati investment firm MGX are the three managing investors, who each hold a 15% share. Other investors include the investment firm of Michael Dell, the billionaire founder of Dell Technologies. ByteDance retains 19.9% of the joint venture. This story was originally published by The Associated Press. Daily newsletters straight to your inbox More From Pro Record Labels Kevin Weaver Promoted to President, Atlantic Music Group 47 minutes ago Melinda Newman Business News TikTok Finalizes Deal to Create New American Entity, Avoiding U.S. Ban Associated Press Trey Songz Sues Police Over Arrest at 2021 Kansas City Chiefs Championship Game Rachel Scharf Fugees Rapper Pras Michel Denied Release During Appeal of 14-Year Prison Sentence Bill Donahue My Morning Jacket Signs With CAA Taylor Mims See All News Billboard is a part of Penske Media Corporation. © 2026 Billboard Media, LLC. All Rights Reserved. Powered by WordPress.com VIP optional screen reader Manage Account Billboard Hot 100™ Billboard 200™ Hits Of The World™ Songs Of The Summer Year-End Charts Decade-End Charts R&B/Hip-Hop Business News Record Labels View All Pro Songwriters & Producers Artist Index Royalty Calculator Market Watch Industry Events Calendar Billboard Español Cultura y Entretenimiento Crossword Puzzle GET ACCESS TODAY