The popular social media platform TikTok has finalized an ownership restructuring that establishes a majority American-owned entity with requirements for continuous testing and updating of its content recommendation algorithm. The announcement Thursday emphasizes ongoing security monitoring rather than one-time fixes.
ByteDance, the Chinese parent company of TikTok, has agreed to a structure reducing its ownership to 19.9%, while American investors assume controlling interest with 80.1% of the company. Three major investors share equal ownership at 15% each: Oracle, led by technology billionaire Larry Ellison; Silver Lake, a prominent private equity firm focused on technology sector investments; and MGX, an investment fund from Abu Dhabi. Michael Dell’s investment firm provides additional American capital.
This resolution addresses legislation enacted by Congress in 2024 that effectively banned TikTok unless it separated from Chinese ownership, with particular emphasis on ensuring ongoing security rather than just initial compliance. The law’s requirements contemplate continuous monitoring and adaptation to emerging threats. The Supreme Court affirmed the legislation’s validity in January 2025.
Leadership of the American entity will be entrusted to Adam Presser, who previously held senior positions managing global operations and trust and safety functions for TikTok. The company will be overseen by a seven-member board of directors, deliberately designed with an American majority and composed of cybersecurity and national security experts who can provide ongoing oversight of security protocols. Current global TikTok CEO Shou Chew will participate as a board member.
The new US entity commits to implementing safeguards that emphasize continuous monitoring and improvement rather than static solutions, including comprehensive data protection protocols, secured algorithms, enhanced content moderation, and software integrity measures. Critically, the platform’s recommendation algorithm will not just be retrained once but will undergo continuous testing, refinement, and updates to ensure it maintains independence from foreign influence as technology and threats evolve. This ongoing verification approach addresses concerns that one-time fixes could be circumvented over time. Both US and Chinese government officials have approved the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for his role in facilitating the deal.
