TikTok finalizes deal to create new US entity under Oracle, Silver Lake, and MGX ownership, avoiding ban through comprehensive data protections and algorithm retraining for 200+ million American users.
TikTok has finalized agreements to create a new U.S. joint venture, avoiding a ban that threatened to shut down the platform for more than 200 million American users. The deal brings together Oracle, Silver Lake, and Emirati investment firm MGX as managing investors, each holding 15% stakes, while ByteDance retains 19.9% ownership.
The new entity will operate under comprehensive data protections, with U.S. user data stored locally in Oracle-run systems. The platform's content recommendation algorithm will be retrained and tested on U.S. user data, though ByteDance will license the algorithm to the new entity. This arrangement raises questions about compliance with the law that prohibits cooperation on algorithm operations between ByteDance and new owners.
President Trump praised the deal and thanked Chinese leader Xi Jinping for approving it, though China has not yet publicly commented. Adam Presser, TikTok's former head of operations, will lead the venture as CEO alongside a seven-member, majority-American board. The agreement ends years of uncertainty that began when Congress passed bipartisan legislation requiring TikTok to find new ownership or face a ban.
Editor’s rationale — This article reports a major institutional outcome with nationwide implications: TikTok finalizes a structural deal to remain operational in the U.S. by creating a new American entity with Oracle, Silver Lake, and MGX as managing investors, resolving years of legislative and executive uncertainty affecting 200+ million U.S. users. The story has strong primary sourcing (company statements, Trump's official post, Georgetown expert analysis) and introduces substantive new information about the deal structure, though some legal ambiguities regarding ByteDance's continued involvement remain unresolved. The durability is high given the long-term nature of platform operations and regulatory compliance, though implementation details may shift.