TikTok and its Chinese parent, ByteDance, have finalized a long-delayed agreement to shift parts of TikTok’s US operations into American hands, securing the app’s future in the United States.

Under the deal, TikTok has formally created a US-based entity controlled by three managing investors: Oracle, private equity firm Silver Lake, and Abu Dhabi-backed MGX.

TikTok Chief Executive Officer Shou Chew will retain global oversight of ByteDance’s most valuable asset while taking a seat on the new board. Adam Presser, formerly TikTok’s head of operations, trust and safety, will lead the US venture as chief executive.

The agreement closes a five-year geopolitical and regulatory standoff that repeatedly put TikTok’s US presence at risk.

In 2024, Congress mandated a sale or ban, citing concerns that Beijing could exploit the platform to access American user data or influence public discourse. TikTok has consistently denied those allegations.

President Donald Trump welcomed the deal, claiming TikTok played a role in his 2024 election victory and publicly thanking Chinese President Xi Jinping for approving the transaction an approval widely seen as politically sensitive in Beijing.

While the valuation of the new US entity has not been formally disclosed, Vice President JD Vance has cited a figure of roughly 14 billion dollars. Previous estimates placed TikTok’s US business, spanning advertising, e-commerce and live streaming between 35 billion and 50 billion dollars, underscoring the scale of the compromise on both sides.

The deal was originally expected to close by January 2025, but Trump repeatedly extended the deadline, allowing negotiations to continue.

Its resolution is a relief for advertisers, brands, creators and small businesses that depend on TikTok, as well as for the app’s roughly 200 million US users.

Ownership of the new entity will be split to comply with US law: new American investors will hold 50 percent, existing ByteDance investors 30.1 percent, and ByteDance itself 19.9 percent. Governance will rest with a seven-member board dominated by US nationals. Oracle, already TikTok’s cloud provider, will assume a formal role overseeing data security and regulatory compliance.

Despite these safeguards, critics argue the structure may fall short of the 2024 national security law, which requires ByteDance to sever operational ties with TikTok’s US business. Whether legal challenges emerge remains uncertain.

The arrangement allows ByteDance to license its content recommendation algorithm to the US entity, which will retrain it using American user data.

At the same time, ByteDance is expected to retain control over lucrative elements of the business, including advertising technology and the fast-growing TikTok Shop.