Small business owners can finally take a deep breath: TikTok finalized a deal to create a new American-based entity, avoiding a U.S. ban. The agreement allows TikTok to continue operating in the U.S. for over 200 million users and resolves years of regulatory uncertainty related to national security and data concerns.
Major American investors back the new U.S. joint venture: Oracle, Silver Lake, and MGX, each holding a 15% stake in the business. China’s ByteDance will retain a 19.9% ownership stake. The new structure gives American investors majority control, addressing long-standing concerns over foreign influence.
Adam Presser, a former TikTok executive, will serve as CEO of the U.S. entity. A seven-member, majority-American board of directors will oversee operations, including TikTok CEO Shou Chew. U.S. user data will be stored domestically, with Oracle managing the storage system.
The finalized deal wraps up a series of regulatory actions. In April 2024, former President Joe Biden passed bipartisan legislation requiring TikTok to divest or face a U.S. ban. The platform temporarily went dark ahead of the January 2025 deadline. On the first day of his second term, President Donald Trump signed an executive order restoring TikTok’s operations and extending the deadline. In September 2025, he signed an executive order clearing the social media platform for U.S. ownership under the new joint venture structure.
TikTok serves as a significant catalyst for economic opportunity, driving job growth and innovation nationwide. According to a 2025 Oxford Economics report, TikTok directly benefited approximately 4.7 million U.S. jobs through TikTok business accounts in 2024. In 2023, the platform generated $14.7 billion in combined revenue for small businesses and contributed $24.2 billion to the U.S. GDP.
The platform remains indispensable for marketing, customer acquisition, and brand building for more than 7 million U.S. small businesses. A potential ban would have caused significant disruption, and the regulatory clarity now allows businesses to continue investing in TikTok strategies with confidence.
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