TikTok announced it has entered into binding agreements with major investors, including Oracle, Silver Lake, and Abu Dhabi’s MGX, to establish a TikTok US joint venture, according to news agency The Associated Press (AP).
The new framework will function under “established safeguards that ensure national security through extensive data protections, algorithm security, content moderation, and software assurances for US users,” the company stated in a release.
TikTok emphasized that American users will continue to enjoy the same app.
Trump expresses gratitude to Xi and VP Vance
US President Donald Trump praised the agreement by posting a message on his Truth Social platform, extending thanks to US Vice President Vance and Chinese President Xi Jinping.
“I am thrilled to have played a role in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Largest in the World, and will serve as an important Voice,” Trump wrote.
Trump also connected the platform to his electoral success, stating it was “responsible for my strong performance with the Youth Vote in the 2024 Presidential Election.”
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Trump thanked US Vice President JD Vance and members of his administration for finalizing the deal, describing the conclusion as “very dramatic, final, and beautiful.”
He also conveyed appreciation for China’s involvement, saying, “I would also like to thank President Xi of China for collaborating with us and ultimately approving the deal. He could have taken a different route, but chose not to, and his decision is appreciated.”
Leadership and governance of the new TikTok US
Adam Presser, a former TikTok executive who previously oversaw operations and trust and safety, will take on the role of chief executive officer (CEO) of the new US venture.
Presser will collaborate with a seven-member board composed mainly of American directors. TikTok’s global CEO, Shou Chew, is also expected to be on the board, as reported by AP.
The ownership structure designates Oracle, Silver Lake, and MGX as managing investors, each holding a 15% stake. Additional investors include the investment firm founded by Dell Technologies’ Michael Dell. ByteDance, TikTok’s parent company based in China, will retain a 19.9% ownership interest.
Algorithm and data at the heart of the discussion
Data security and oversight of TikTok’s recommendation algorithm remain critical to the agreement.
US user data will be stored domestically on systems managed by Oracle. The algorithm will be retrained and updated using data from US users under the new entity, according to AP.
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However, this arrangement raises concerns about adherence to US laws, which prohibit “any cooperation regarding the operation of a content recommendation algorithm” between ByteDance and a new American owner.
Under the agreement, ByteDance will license the algorithm to the US venture, a stipulation that may attract regulatory scrutiny, as noted by AP.
The Chinese government has not publicly responded to the announcement at this time.
