TikTok US Deal: Avoids Ban as Company Creates New Entity

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 .