Facing a potential ban in the United States, TikTok has reached an agreement with Washington authorities to continue operating in the US. The social network and its Chinese parent company, ByteDance, have approved the creation of a separate US entity, bringing together several investors primarily based in the United States, in accordance with the political and security requirements of Donald Trump.
This new structure, which is due to be finalized in early 2026, aims to address concerns among US officials regarding the exploitation of personal data and the potential influence of Beijing on the algorithm of the platform, used by approximately 170 million Americans.
Governance and data under American control
The joint venture will operate independently for all data protection, algorithm security, and content moderation matters in the United States. American investors, including Oracle, Silver Lake, and the MGX fund, will hold a majority stake and majority representation on the board of directors. ByteDance will retain a minority stake and remain involved in certain global business aspects.
This agreement puts an end to several years of legal and political uncertainty surrounding TikTok in the United States. While it allows the app to avoid an outright ban, it also comes amid increased international scrutiny of the social network, particularly in Europe, where investigations and sanctions related to data protection are still ongoing.
