TikTok has finalised a $14 billion agreement to create a US-based subsidiary, successfully avoiding a nationwide ban on the popular video-sharing platform.
The new ownership structure will see US private equity firm Silver Lake, Abu Dhabi-based AI company MGX, and Oracle — the technology giant co-founded by Larry Ellison — each take a 15% stake in the US joint venture. TikTok’s Beijing-based parent company, ByteDance, will retain just under 20%, while the Dell Family Office, the investment arm of Michael Dell, is also participating.
The deal follows legislation passed by Congress in April 2024, which required TikTok to be sold to US owners by January 19, 2025, or face a ban due to national security concerns over its ties to China. President Trump delayed enforcement of the ban several times while negotiations were ongoing and approved the deal framework in September, giving the parties extra time to finalise terms.
Under the new arrangement, TikTok’s US operations will operate as an independent entity overseen by a seven-member board, including CEO Shou Zi Chew, Oracle Executive VP Kenneth Glueck, Silver Lake co-CEO Egon Durban, and representatives from MGX, TPG Global, Susquehanna International Group, and DXC Technology. Adam Presser, TikTok’s head of operations, will serve as CEO of the new US entity.
The agreement also ensures that TikTok’s US algorithm will be managed within Oracle’s US-based cloud, using American user data, addressing a key national security concern. Vice President JD Vance noted that this control over the algorithm was essential to meeting US regulatory requirements.
While President Trump praised the deal as a win for American investors and the platform’s future in the US, Chinese officials have urged that the agreement comply with Chinese law. Some lawmakers continue to scrutinise the deal to ensure it addresses national security concerns, though assurances on data and content control appear to have eased some opposition.
Critics remain cautious, however. Michael Sobolik of the Hudson Institute warned that China could still retain significant influence despite ByteDance’s reduced stake.
The agreement is expected to keep TikTok operational in the US while reshaping its governance and data controls under American oversight.
