The joint venture set to acquire TikTok’s U.S. assets has been formally established and unveiled its leadership team, the company said on Thursday, one day ahead of a deadline set by President Donald Trump for the video app to be divested by its Chinese parent, ByteDance.
The completion of the transaction marks the culmination of a years-long effort to secure TikTok’s future in the United States and address concerns among U.S. lawmakers that the app posed potential national security risks.
In a statement, the company said the majority American-owned joint venture would operate under “robust safeguards” designed to protect national security, including comprehensive data protections, algorithm security measures, content moderation oversight, and software assurances for U.S. users.
The new entity will be led by Chief Executive Officer Adam Presser, who previously spearheaded TikTok’s U.S. data security initiatives, alongside Chief Security Officer Will Farrell, who oversaw privacy and security efforts related to the transaction.
Oversight will be provided by a board that includes TikTok U.S. CEO Shou Chew, Oracle Executive Vice President Kenneth Glueck, and representatives from investment firms including Susquehanna International Group, Silver Lake, and Abu Dhabi–backed investment firm MGX.
TikTok’s U.S. saga began during Trump’s first term, when he threatened to ban the app. The issue escalated in 2024 after then-President Joe Biden signed legislation requiring TikTok’s U.S. operations to be spun off from ByteDance or face a nationwide ban. Since returning to office, Trump has repeatedly delayed enforcement of the law while pursuing a deal to shift control of TikTok’s U.S. operations to American ownership.
After Trump approved the transaction last fall, he gave the parties until January23 to finalize the deal. TikTok signed the agreement last month.
The outcome is likely to reassure TikTok’s more than 200 million U.S. users, many of whom rely on the app for entertainment, news, and income generation.
Under the agreement, control of TikTok’s U.S. user data and most of its U.S. operations will be transferred to a newly formed joint venture. The consortium led by Oracle, Silver Lake, and MGX will hold 50% of the entity, while affiliates of existing ByteDance investors will own just over 30%. ByteDance itself will retain a 19.9% stake, according to an internal memo Chew sent to employees.
The joint venture plans to retrain TikTok’s recommendation algorithm using U.S. user data, with Oracle overseeing data storage. The new U.S. entity will also assume responsibility for content moderation for American users. ByteDance’s global TikTok organization, however, will continue to manage e-commerce, advertising, and marketing operations on the U.S. platform.
As a result, the user experience is expected to remain largely unchanged, although the content recommendation algorithm could evolve under the new ownership structure.
Trump last year designated the transaction a “qualified divestiture” under the sale-or-ban law. Still, questions remain over whether the arrangement fully resolves the national security concerns that initially prompted bipartisan legislation.
U.S. officials have long expressed fears that ByteDance could be compelled by the Chinese government to manipulate TikTok’s algorithm to influence public opinion or sow dissent. The law specifically prohibits cooperation between ByteDance and any new U.S. owner on the operation of the content recommendation algorithm.
Addressing those concerns, the joint venture said that limited interoperability with ByteDance would allow U.S. users to retain a global TikTok experience, enabling American creators and businesses to reach international audiences.
Under the finalized agreement, the joint venture will continue to license the TikTok algorithm from ByteDance before retraining and reviewing it independently.
Beijing’s approval of the deal had remained uncertain until its conclusion, with TikTok becoming a bargaining chip in broader U.S.-China trade negotiations. A previous version of the transaction collapsed last year after Trump announced new tariffs.
Last month, Ministry of Commerce spokesperson He Yongqian said China and the U.S. had reached a basic consensus framework on resolving issues related to TikTok and trade.
“The Chinese government hopes that enterprises will reach solutions that comply with Chinese laws and regulations and reflect a balance of interests,” He said, adding that Beijing expects Washington to provide a fair, open, transparent, and non-discriminatory business environment for Chinese companies operating in the United States.
