TikTok, the popular social video platform, has finalized a deal to create a new American entity, effectively avoiding a potential ban in the United States. The agreement comes after months of negotiations and uncertainty surrounding the app’s future in the country. The deal involves the sale of a majority stake in TikTok’s US operations to a group of non-Chinese investors, with ByteDance, TikTok’s parent company, retaining only 20 percent of the new entity.
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The investors involved in the deal include tech giant Oracle, private equity firm Silver Lake, and MGX, an Emirati-state owned investment firm. Each of these investors will hold a 15 percent stake in the new TikTok U.S. joint venture, with other participants including the investment firm of Dell’s CEO. The terms of the agreement were first leaked last month, and the deal was officially closed just before the latest deadline set by the Trump Administration.
One of the key aspects of the deal is the protection of American users’ data, with Oracle providing a secure US cloud environment for storing this information. Additionally, the new entity will retrain TikTok’s algorithm on US users’ data and will be responsible for content moderation within the US market. The joint venture also promises interoperability, ensuring that users will still have access to international content and creators.
The new entity will be overseen by a seven-member board of directors, with a majority of members being Americans. This board includes TikTok’s CEO, Shou Chew, as well as representatives from Silver Lake, Oracle, and MGX. The involvement of these major investors and the establishment of a US-based entity for TikTok mark a significant development in the app’s ongoing operations in the country.
The deal’s completion signifies the resolution of a long-standing issue regarding TikTok’s ownership and operations in the US. The app, which boasts over 200 million American users, faced the threat of a ban if it did not find a new owner within the US. With the formation of the new American entity, TikTok can continue to operate in the country under defined safeguards that prioritize national security and data protection.
Overall, the finalized deal for TikTok’s US entity represents a significant milestone for the app’s future in the American market. By addressing concerns related to data security, algorithm control, and content moderation, the agreement ensures that TikTok can maintain its presence and popularity among users in the US.
Sources:
– Engadget: https://www.engadget.com/big-tech/tiktok-finalizes-deal-for-its-us-entity-010543484.html?src=rss
– NPR: https://www.npr.org/2026/01/22/nx-s1-5685456/tiktok-finalizes-deal-to-form-new-american-entity
– BBC News: https://www.bbc.com/news/articles/c3edd1l328lo?at_medium=RSS&at_campaign=rss
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References:
– https://www.engadget.com/big-tech/tiktok-finalizes-deal-for-its-us-entity-010543484.html?src=rss
– https://www.npr.org/2026/01/22/nx-s1-5685456/tiktok-finalizes-deal-to-form-new-american-entity
– https://www.bbc.com/news/articles/c3edd1l328lo?at_medium=RSS&at_campaign=rss
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