TikTok Implements Software Assurance Protocols Under New US Ownership Framework

The widely popular video-sharing platform TikTok confirmed Thursday that it has finalized a comprehensive ownership restructuring establishing a majority American-owned entity, successfully navigating around a federal prohibition that threatened its US operations. The deal brings an end to five years of regulatory pressure and political uncertainty.
ByteDance, the Chinese technology conglomerate that created TikTok, has agreed to reduce its ownership stake to 19.9% in the American entity, transferring majority control to US investors who collectively hold 80.1%. Three major investors share equal portions at 15% each: Oracle, the enterprise software and cloud infrastructure company; Silver Lake, a leading private equity firm specializing in technology investments; and MGX, an investment entity from Abu Dhabi. The investment firm of billionaire entrepreneur Michael Dell also participates.
This resolution addresses legislation enacted by Congress in 2024 that mandated TikTok divest from Chinese ownership or cease American operations due to national security considerations. Lawmakers and intelligence officials expressed concern about potential risks including unauthorized data access by foreign governments and algorithmic manipulation of American users. The Supreme Court upheld the ban in early 2025, but President Trump employed executive authority to delay enforcement while facilitating deal negotiations.
The restructured American TikTok will be managed by Adam Presser as chief executive officer, utilizing his substantial experience from previous leadership positions with the company. Corporate governance will be exercised by a seven-member board of directors, deliberately composed with an American majority and populated by professionals with expertise in cybersecurity and national security. Current global TikTok CEO Shou Chew will participate as a board member.
According to the company’s announcement, the US entity will operate with defined safeguards designed to protect national security through multiple mechanisms, including comprehensive data protection systems, secured algorithm architecture, robust content moderation, and software assurance protocols specifically tailored for American users. The platform’s recommendation algorithm will undergo complete retraining based exclusively on US user data, with rigorous testing and ongoing updates to maintain independence. Both the US and Chinese governments have endorsed the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for his role in approving the deal, which allows the platform to continue serving millions of American users.