{"id":112294,"date":"2026-01-23T03:24:00","date_gmt":"2026-01-23T03:24:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=112294"},"modified":"2026-01-23T03:24:00","modified_gmt":"2026-01-23T03:24:00","slug":"tiktok-finalises-deal-to-form-new-american-entity","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=112294","title":{"rendered":"TikTok finalises deal to form new American entity"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 35 Second <\/div>\n\n <\/div>
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TikTok\u00a0has finalised a deal to create a new American entity, avoiding the looming threat of a US ban that has been under discussion for years.<\/p>\n

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. <\/p>\n

The new version will operate under \u201cdefined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for U.S. users,\u201d the company said in a\u00a0statement\u00a0Thursday. <\/p>\n

American TikTok users can continue using the same app.<\/p>\n

President Donald Trump praised the deal in a Truth Social post, thanking China\u2019s President Xi specifically \u201cfor working with us and, ultimately, approving the Deal.\u201d <\/p>\n

Trump added that he hopes \u201cthat long into the future I will be remembered by those who use and love TikTok.\u201d<\/p>\n

Adam Presser, who previously worked as TikTok\u2019s 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\u2019s CEO\u00a0Shou Chew.<\/p>\n

The deal marks the end of years of uncertainty about the fate of the popular video-sharing platform in the United States. <\/p>\n

After wide bipartisan majorities in Congress passed \u2014 and President Joe Biden signed \u2014 a law that would\u00a0ban TikTok in the U.S.\u00a0if it did not find a new owner in place of China\u2019s ByteDance, the platform was set to go dark on the law\u2019s January 2025 deadline. <\/p>\n

For several hours, it did. But on his first day in office, President Donald Trump signed an\u00a0executive order to keep it running\u00a0while his administration sought an agreement to sell the company.<\/p>\n

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\u2019s 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.<\/p>\n

The algorithm has been a central issue in the debate over TikTok\u2019s security. China previously maintained that the algorithm must remain under Chinese control by law. <\/p>\n

But the U.S. regulation passed with bipartisan support said any divestment of TikTok must mean the platform cuts ties \u2014 specifically the algorithm \u2014 with ByteDance. <\/p>\n

Under the terms of this deal, ByteDance would license the algorithm to the U.S. entity for retraining.<\/p>\n

The law prohibits \u201cany cooperation with respect to the operation of a content recommendation algorithm\u201d between ByteDance and a new potential American ownership group, so it is unclear how ByteDance\u2019s continued involvement in this arrangement will play out.<\/p>\n

Oracle, Silver Lake, and the Emirati investment firm MGX are the three managing investors, each holding a 15% share. <\/p>\n

Other investors include the investment firm of Michael Dell, the billionaire founder of Dell Technologies. ByteDance retains a 19.9% stake in the joint venture.<\/p>\n

The Chinese government has not publicly commented on TikTok\u2019s announcement.<\/p>\n<\/div>\n

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