TikTok US Entity Deal Finalized, Avoiding Potential Ban
- entity, averting a potential ban and resolving a years-long legal battle.
- Investors including Larry Ellison's Oracle, the private-equity group Silver Lake, and Abu Dhabi's MGX will collectively own 80.1% of TikTok U.S.
- the resolution comes nearly five years after Donald Trump first threatened to ban the app during his initial term in office.
TikTok has secured a deal to establish a new U.S. entity, averting a potential ban and resolving a years-long legal battle. The agreement, finalized Thursday by TikTok’s chinese owner ByteDance, creates a majority American-owned venture.
Investors including Larry Ellison’s Oracle, the private-equity group Silver Lake, and Abu Dhabi’s MGX will collectively own 80.1% of TikTok U.S. Data security (USDS), while ByteDance will retain a 19.9% stake. Details of the deal were released by TikTok on Thursday.
the resolution comes nearly five years after Donald Trump first threatened to ban the app during his initial term in office.
Congress passed a law in 2024 requiring tiktok to find a U.S. buyer or face a ban. The Supreme Court upheld the law in January 2025, but Trump subsequently postponed enforcement through executive orders, allowing negotiations to continue. He signed another executive order in September outlining a plan for U.S. investors to control the majority of TikTok’s operations, overseen by a seven-member, majority-American board focused on cybersecurity and national security.
The deal effectively ends a period of uncertainty for the popular social media platform. More information on the agreement can be found in the New York Times.
reuters also reported on the finalized deal.