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TikTok’s Chinese parent company, ByteDance, has finalized a deal to place the app’s US operations into a new joint venture that is mostly owned by American investors. The move protects US user data and avoids a potential nationwide ban.

This agreement comes after nearly five years of legal, political, and regulatory battles over national security concerns. TikTok is used by over 200 million Americans. Scrutiny began in August 2020, when former President Trump tried to ban the app over fears that China could access US user data.

A law passed in April 2024 required ByteDance to sell TikTok’s US assets by January 2025 or face a ban, a measure later upheld by the Supreme Court. Trump later paused enforcement through executive orders while negotiations continued.

Under the deal, the newly formed TikTok USDS Joint Venture LLC will be 80.1% owned by American and global investors, while ByteDance keeps a 19.9% stake. The venture will be managed by three main investors, Oracle, Silver Lake, and MGX from Abu Dhabi, each holding 15%. Other investors include Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital.

The joint venture will have a seven-member board, with a majority of Americans. Board members include TikTok CEO Shou Chew, Silver Lake co-CEO Egon Durban, Oracle’s Kenneth Glueck, and MGX’s David Scott, among others. A White House official confirmed that both the US and Chinese governments approved the deal, though China has not made a public statement.

Trump praised the agreement on social media, calling it ownership by “Great American Patriots and Investors, the Biggest in the World,” and thanked Chinese President Xi Jinping for approving the deal.

The venture will secure US user data, apps, and TikTok’s recommendation algorithm. Data and algorithms will be hosted on Oracle’s US cloud and retrained using US user data. TikTok said the venture will operate under safeguards covering national security, content moderation, algorithm security, and software protections.

The venture will manage backend operations, US user data, and the algorithm, while ByteDance will continue controlling revenue-generating parts like advertising and e-commerce. The venture will also receive a share of revenue for providing technology and data services.

Adam Presser, TikTok’s head of operations and trust and safety, will be CEO of the new venture, while Will Farrell becomes chief security officer. Shou Chew will remain a director while continuing to lead TikTok’s global business.

TikTok’s US relevance remains strong. Trump, with over 16 million followers on the platform, credited it for helping his reelection. The White House also launched an official TikTok account in August, showing the platform’s ongoing political and cultural influence as it transitions to new ownership.