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TikTok has finalized a major restructuring of its U.S. business after its China-based parent company, ByteDance, agreed to transfer majority ownership to a newly formed American-led joint venture, a move aimed at complying with U.S. national security legislation and preventing the app from being shut down.

Under the deal announced Thursday, the new entity, TikTok USDS Joint Venture LLC, will be controlled by a group of non-Chinese investors, while ByteDance will retain a minority stake of just under 20 percent. The joint venture is managed by U.S. private equity firm Silver Lake, Oracle Corp., and Abu Dhabi-backed artificial intelligence investor MGX, each holding equal stakes. Additional investors, including an investment firm tied to Dell Technologies CEO Michael Dell, collectively bring U.S. ownership of the platform to more than 80 percent.

The transaction was required under the Protecting Americans from Foreign Adversary Controlled Applications Act, passed by Congress in April 2024. The law ordered TikTok to either divest from Chinese ownership or cease U.S. operations. After legal challenges failed and the Supreme Court upheld the statute, the company moved forward with the sale.

TikTok said the new ownership structure includes extensive safeguards designed to address national security concerns. U.S. user data and the platform’s recommendation algorithm will be housed within Oracle’s domestic cloud infrastructure, and access will be restricted under strict compliance controls.

The venture will be overseen by a seven-member board composed primarily of U.S. executives from technology, finance, and cybersecurity sectors. Leadership of the joint venture will be handled by TikTok’s current head of operations and trust and safety, while security oversight will remain with an executive previously responsible for U.S. data protection initiatives.

The arrangement also applies to related applications operated by ByteDance, including video editing platform CapCut and social media app Lemon8, which will now fall under the same U.S.-controlled governance framework.

President Donald Trump approved the deal through an executive order, citing assurances that the restructuring eliminates foreign control risks while allowing American users, creators, and businesses to continue using the platform. Administration officials have said the U.S. entity is valued at approximately $14 billion.

TikTok temporarily went offline in early 2025 amid uncertainty over enforcement deadlines, but service was restored after the White House delayed implementation of the divestment law while negotiations continued.

In a public statement, Trump praised the agreement, calling it a decisive resolution that protects U.S. interests while keeping one of the country’s most popular digital platforms operational.