TikTok finalizes a deal to form a new American entity, keeping the app online in the US

TikTok says it has signed agreements to create a new American entity, a step that would keep the hugely popular video app operating in the United States after years of political and legal uncertainty. The company said the new structure is designed to satisfy US national security demands that have centered on whether user data or the content-recommendation system could be influenced by China-based parent ByteDance.

According to TikTok, the arrangement establishes a US joint venture with major investors including Oracle, Silver Lake, and the Abu Dhabi–based investment firm MGX. TikTok said the US version will operate under safeguards that cover data protections, algorithm security, content moderation, and software assurances for American users. For people using the service day to day, TikTok said they can keep using the same app interface rather than switching to a new download.

The deal follows legislation signed in 2024 requiring TikTok to find new ownership in the United States or be banned. That law set a deadline in January 2025, and TikTok briefly went dark before executive orders kept the service running while negotiations continued. The new agreement is meant to resolve that standoff by placing US operations in a structure that limits ByteDance’s role and increases oversight by American stakeholders.

TikTok said Adam Presser, previously the company’s head of operations and trust and safety, will lead the new entity as CEO. Oversight is expected to come from a seven-member board described as majority American, while TikTok CEO Shou Chew is also expected to have a role. The company framed the governance design as a key part of ensuring decision-making and accountability that align with US expectations.

A central unresolved question is how the recommendation algorithm will be handled in practice. TikTok said the algorithm will be retrained, tested, and updated using US user data, with an emphasis on keeping that data in the United States under an Oracle-run system. But national security debates around TikTok have consistently focused on whether algorithmic cooperation with ByteDance can be fully severed, and the agreement’s approach relies on licensing the algorithm while attempting to localize and independently retrain it.

Even with the new structure, legal and regulatory scrutiny is likely to continue because the US law sought a clean break between TikTok and ByteDance, particularly around the recommendation technology that shapes what Americans see. Analysts have also warned that shifting algorithm training and control could subtly change content ranking and engagement dynamics, raising both product and policy stakes as the transition unfolds.

For TikTok’s creators and small businesses, the agreement is positioned as a reprieve from a looming platform disruption. For policymakers, it is another attempt to reconcile a politically sensitive national security issue with the reality that TikTok has become a major communications and commerce channel for more than 200 million users in the United States.