TikTok Establishes US Entity with Enhanced Algorithm Security Measures

TikTok announced Thursday the successful completion of a transformative ownership deal that creates a majority American-owned entity with enhanced algorithm security measures specifically designed to address national security concerns. The agreement allows the platform to avoid a federal ban while implementing robust technological safeguards.
ByteDance, which developed and operates TikTok globally, will maintain just 19.9% ownership of the American entity under the finalized structure. US investors collectively control 80.1%, with three primary stakeholders sharing equal portions: Oracle at 15%, Silver Lake at 15%, and MGX at 15%. The investment firm of billionaire Michael Dell also participates in the American ownership group.
The deal responds to legislation passed by Congress in 2024 that required TikTok to find an American buyer or face complete prohibition from US digital infrastructure. The law stemmed from bipartisan national security concerns, including fears that the Chinese government could access American user data or manipulate content through algorithmic control. The Supreme Court upheld the ban in January 2025, after which President Trump issued executive orders delaying enforcement to facilitate ongoing negotiations.
The new American TikTok will be headed by Adam Presser as chief executive officer, bringing institutional knowledge from his previous leadership positions within the company, including roles as general manager and global head of operations and trust and safety. Strategic direction will come from a seven-person board of directors, structured with an American majority and filled with professionals who have backgrounds in cybersecurity and national security. Shou Chew, the current global CEO of TikTok, will serve on the board.
The restructured organization commits to implementing comprehensive safeguards for American users, including advanced data protection measures, secured algorithm architecture, enhanced content moderation, and software integrity protocols. Central to these protections is the commitment to completely retrain the content recommendation algorithm using exclusively US user data, with continuous testing and refinement to ensure the system operates independently from foreign influence or manipulation. Both US and Chinese government officials have approved the deal, with President Trump publicly expressing appreciation to Chinese President Xi Jinping for facilitating the arrangement.