TikTok Deal Features Seven-Member Board with Cybersecurity Expert Majority

In a significant development for digital platform governance, TikTok confirmed Thursday that it has finalized an ownership restructuring establishing a majority American-owned entity overseen by a seven-member board of directors with expertise in cybersecurity and national security. The agreement allows the platform to avoid a federal ban while implementing robust security oversight.
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 reflected widespread concern among policymakers about potential national security vulnerabilities, including unauthorized data access by foreign governments and algorithmic manipulation. 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. This governance structure directly addresses concerns about foreign influence and data security vulnerabilities. Shou Chew, the current global CEO of TikTok, will participate as a board member, ensuring strategic coordination.
The new US company commits to operating with comprehensive safeguards specifically designed to protect national security, 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.