The popular social media platform TikTok has finalized an ownership restructuring that establishes a majority American-owned entity, bringing resolution to a legal battle that reached the Supreme Court and tested the limits of congressional authority over foreign-owned technology platforms. The announcement Thursday closes a significant chapter in technology law.
ByteDance, the Chinese parent company of TikTok, has agreed to a structure reducing its ownership to 19.9%, while American investors assume controlling interest with 80.1% of the company. Three major investors share equal ownership: Oracle, Silver Lake, and MGX at 15% each. Michael Dell’s investment firm provides additional capital.
The legal battle began when Congress passed legislation in 2024 requiring Chinese divestment, which TikTok challenged on constitutional grounds including First Amendment protections for speech and Fifth Amendment protections against takings. The case reached the Supreme Court, which in January 2025 upheld the legislation, affirming congressional authority to impose such requirements based on national security concerns. This Supreme Court decision eliminated legal obstacles to enforcing the ban, intensifying pressure for a negotiated resolution.
Leadership of the American entity will be entrusted to Adam Presser as CEO, with oversight from a seven-member board of directors with an American majority and cybersecurity experts. Shou Chew will participate as a board member, maintaining continuity despite the legal restructuring.
The new US entity implements the safeguards contemplated by the legislation that survived Supreme Court scrutiny, including comprehensive data protection protocols, secured algorithms, enhanced content moderation, and software integrity measures validated as addressing legitimate national security concerns. The platform’s recommendation algorithm undergoes complete retraining using exclusively US user data. President Trump intervened after the Supreme Court ruling to delay enforcement, and both governments have now approved the arrangement that resolves the legal battle without requiring complete platform shutdown.