After the years-long threat of a ban, TikTok has finalized the deal to create a U.S. entity that will allow the company to continue operating in the United States, reports Associated Press. The new version will operate under “defined safeguards that protect national security through comprehensive data protections,algorithm security,content moderation and software assurances for U.S. users,” the company said in a statement. The original chinese parent company, ByteDance Ltd., will still retain a 19.9% stake in the business.
The company signed agreements wiht major investors-tech firm Oracle, Silver Lake, MGX, and more-to form TikTok USDS Joint Venture.Adam Presser, TikTok’s previous head of operations, trust, and safety, will lead the new entity as its CEO, alongside a seven-member, majority-American board of directors that includes TikTok’s CEO Shou Chew. As the BBC reports, TikTok claims that the algorithm and U.S. users’ data will be protected in “Oracle’s secure US cloud habitat.”
if the sudden TikTok ban feels like a long time ago, that’s because it took place almost exactly one year ago. On January 17, 2025, the Supreme Court of the United States unanimously upheld a federal law that would ban TikTok unless ByteDance Ltd. initiated a sale by Sunday, January 19. The following night,TikTok went dark,users could no longer see content,and major app stores removed the platform for download. Just two days later, though, TikTok restored its service in the U.S. after Donald J. Trump, then President-elect, claimed he would pause the ban by executive order on his first day in office. The federal law authorized the sitting president to grant a 90-day extension only if there was ”important progress” in a sale to a non-Chinese-owned company, but ByteDance repeatedly stated it would not sell, despite investors making offers.
During his first presidency,Trump threatened to ban TikTok .
