TikTok Finalizes Deal to Form a New U.S. Unit

TikTok has finalized a deal to create a new American entity, avoiding the looming threat of a US ban that has been debated for years.

The deal ends years of uncertainty surrounding the fate of the popular video-sharing platform in the US. (Photo: TikTok)

The platform is now used by more than 200 million Americans, Kaitlyn Huamani reported for the Associated Press (AP).

The social video platform signed agreements with major investors including Oracle, Silver Lake, and Emirati investment firm MGX to form a new TikTok US joint venture.

The new entity will operate under “defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users,” the company said in a recent statement.

American TikTok users will continue using the same app. Adam Presser, who previously served as TikTok’s head of operations and trust and safety, will lead the new venture as chief executive officer.

He will work alongside a seven-member, majority-American board of directors that includes TikTok CEO Shou Chew.

The Chinese government has not yet publicly commented on TikTok’s announcement.

Earlier Thursday, ahead of the company’s statement, Liu Pengyu, a spokesperson for the Chinese embassy in Washington, said, “China’s position on TikTok has been consistent and clear.”

The deal ends years of uncertainty surrounding the fate of the popular video-sharing platform in the US.

After wide bipartisan majorities in Congress passed—and President Joe Biden signed—a law that would ban TikTok in the US unless it found a new owner to replace China’s ByteDance, the platform was set to go dark at the law’s January 2025 deadline. It briefly did so.

However, on his first day in office, President Donald Trump signed an executive order allowing TikTok to continue operating while his administration sought an agreement for the company’s sale, Chan Ho-him and Didi Tang also reported for AP.