TikTok announced Thursday the successful finalization of an ownership restructuring that establishes a majority American-owned entity featuring comprehensive software integrity verification systems designed to ensure platform security. The deal addresses technical concerns about code security and unauthorized access.
The completed transaction reduces ByteDance’s ownership to a 19.9% minority stake, while American investors collectively control 80.1% of the new US-based company. The American ownership group features three primary stakeholders with equal shares: Oracle at 15%, Silver Lake at 15%, and MGX at 15%. The investment firm associated with Michael Dell also contributes to the ownership structure.
This settlement stems from congressional legislation passed in 2024 that required TikTok to divest from Chinese ownership due to national security concerns, including worries about software vulnerabilities and potential unauthorized access to the platform’s systems. The law reflected bipartisan concern that foreign ownership could facilitate security compromises. The Supreme Court validated the ban in January 2025.
The restructured American TikTok will be led by Adam Presser as CEO, leveraging his extensive experience from previous leadership positions within the company. Strategic oversight will be provided by a seven-person board of directors, deliberately constructed with an American majority and filled with cybersecurity and national security experts who can oversee the technical security measures. Current TikTok CEO Shou Chew will join the board.
The new US entity commits to implementing rigorous technical safeguards, including comprehensive data protection protocols, secured algorithm architecture, enhanced content moderation, and software integrity verification systems designed to detect and prevent unauthorized code modifications or access. These software assurance protocols provide technical mechanisms to verify that the platform operates as intended without foreign interference. The platform’s recommendation algorithm will undergo complete retraining based exclusively on US user data, with continuous testing. Both US and Chinese government officials have approved the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for facilitating the deal.