TikTok Restructuring Addresses Data Harvesting Concerns with Comprehensive Protections

In a major development addressing longstanding data security concerns, TikTok confirmed Thursday that it has finalized an ownership restructuring establishing a majority American-owned entity with comprehensive data protection measures designed to prevent unauthorized harvesting of user information. The agreement allows the platform to avoid a federal ban while implementing robust privacy safeguards.
ByteDance, the Beijing-based technology company behind TikTok, has agreed to reduce its ownership stake to 19.9% in the American entity, while US investors control 80.1%. The American ownership group includes three major stakeholders with equal 15% shares: Oracle, led by billionaire Larry Ellison; Silver Lake, a leading technology-focused private equity firm; and MGX, an investment fund from Abu Dhabi. Michael Dell’s investment firm also contributes to the American ownership consortium.
The deal addresses bipartisan legislation enacted in 2024 that effectively banned TikTok unless it separated from Chinese ownership within a specified period. The law stemmed from widespread concern among policymakers and intelligence officials about potential national security vulnerabilities, with particular focus on fears that foreign governments could compel access to American user data. The Supreme Court upheld the legislation in January 2025, after which President Trump issued executive orders postponing enforcement to allow for continued negotiations.
Leadership of the American entity will fall to Adam Presser as CEO, bringing substantial experience from his previous roles as general manager and global head of operations and trust and safety. The entity will be governed by a seven-member board of directors, intentionally structured with an American majority and populated by professionals with deep expertise in cybersecurity and national security disciplines. Shou Chew, the current global CEO of TikTok, will participate as a board member.
The new US company commits to operating with comprehensive safeguards specifically designed to protect against data harvesting and unauthorized access, including advanced data protection protocols, secured algorithm architecture, robust content moderation systems, and software integrity assurances. The platform’s recommendation algorithm will undergo complete retraining using only data from American users, with continuous testing and refinement to ensure the system operates independently from foreign influence. Both US and Chinese government officials have approved the arrangement, with President Trump expressing gratitude to Chinese President Xi Jinping for facilitating the deal that addresses core privacy and security concerns.