TikTok has finalised a long-anticipated agreement to establish a new United States-based entity, effectively addressing the threat of a nationwide ban that has loomed over the short-video platform for several years. The social media firm announced it has signed binding agreements with key investors to create a TikTok US joint venture, marking a significant milestone in resolving regulatory concerns.

Investment Structure and Stakeholders

The new joint venture brings together major technology and investment partners in a carefully structured ownership arrangement:

The new structure will operate under "defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for US users," according to the company's statement. American users will continue to access the same app without disruption.

Presidential Response and Political Support

President Trump welcomed the agreement through a message on his Truth Social platform, expressing gratitude to multiple parties involved in the deal. "I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice," Trump wrote.

Trump linked the platform to his electoral performance, stating it was "responsible for my doing so well with the Youth Vote in the 2024 Presidential Election." He thanked Vice President JD Vance and members of his administration for finalising the deal, describing its conclusion as "very dramatic, final, and beautiful."

Notably, Trump expressed appreciation for China's role in facilitating the agreement: "I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn't, and is appreciated for his decision."

Leadership and Governance Framework

The new US venture will be led by Adam Presser, a former TikTok executive who previously headed operations and trust and safety functions. Presser will serve as chief executive officer and work alongside a seven-member board structure designed to ensure American oversight:

• Board Composition: Majority of American directors
• Global Representation: TikTok's global CEO Shou Chew will also serve on the board
• Governance Model: Structured to address regulatory concerns while maintaining operational continuity

Data Security and Algorithm Control

Data security and control of TikTok's recommendation algorithm remain central elements of the agreement. The arrangement addresses key regulatory concerns through specific technical measures:

However, the arrangement raises questions about compliance with US law, which bars "any cooperation with respect to the operation of a content recommendation algorithm" between ByteDance and a new American owner. Under the deal, ByteDance will license the algorithm to the US venture, a provision that could face regulatory scrutiny.

Regulatory and International Implications

The agreement represents a complex balance between addressing national security concerns and maintaining TikTok's operational capabilities. The Chinese government has not publicly commented on the announcement, leaving questions about broader diplomatic implications of the deal.

The successful completion of this agreement marks the end of years of regulatory uncertainty for TikTok's US operations, providing a framework that aims to satisfy both security requirements and business continuity needs.