TikTok finalized a deal to create a new American entity, avoiding the looming threat of a ban in the United States that was under discussion for years.

FILE - The icon for the TikTok video sharing app is seen on a smartphone in Marple Township, Pa., Feb. 28, 2023. (AP Photo/Matt Slocum, File)

The social video platform company signed agreements with major investors including Oracle, Silver Lake and MGX to form the new TikTok U.S. joint venture.

The new version will operate under "defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for U.S. users," the company said in a statement Thursday.

American TikTok users can continue using the same app.

Adam Presser, who previously worked as TikTok's head of operations and trust and safety, will lead the new venture as its CEO. He will work alongside a seven-member, majority-American board of directors that includes TikTok's CEO Shou Chew.

Shou Chew arrives at the 11th Breakthrough Prize Ceremony on Saturday, April 5, 2025, in Los Angeles. (Photo by Jordan Strauss/Invision/AP)

The deal marks the end of years of uncertainty about the fate of the popular video-sharing platform in the United States.

Wide bipartisan majorities in Congress passed β€” and then-Democratic President Joe Biden signed β€” a law that would ban TikTok in the U.S. if it did not find a new owner in place of China's ByteDance.

The platform was set to go dark on the law's January 2025 deadline. For several hours, it did.

However, on his first day back in office, President Donald Trump signed an executive order to keep it running while his administration sought an agreement for the sale of the company.

In addition to an emphasis on data protection, with U.S. user data being stored locally in a system run by Oracle, the joint venture alsoΒ willΒ focus on TikTok's algorithm. The content recommendation formula, which feeds users specific videos tailored to their preferences and interests, will be retrained, tested and updated on U.S. user data, the company said in its announcement.

Oracle, Silver Lake and the Emirati investment firm MGX are the three managing investors, who each hold a 15% share. Other investors include the investment firm of Michael Dell, the billionaire founder of Dell Technologies.

ByteDance retains 19.9% of the joint venture.


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