TikTok Secures U.S. Future With New American-Owned Entity

TikTok has finalized a long-awaited deal to create a new U.S.-based entity for its American operations, bringing an end to years of political and legal uncertainty that repeatedly put the app at risk of a nationwide ban.

A new U.S.-controlled structure aims to resolve long-running security concerns

According to the official announcement, the new company will operate as an 80 percent American-owned joint venture. Existing U.S. investors and partners will hold the majority stake, while ByteDance will retain a 20 percent ownership share.

A key part of the deal centers on data security and oversight. Oracle will provide secure U.S.-based cloud infrastructure to host TikTok services and protect American user data. Oracle will also retrain TikTok’s recommendation algorithm using U.S. user data and oversee content moderation operations within the country.

The finalized arrangement includes safeguards around data access, algorithm security, and moderation practices, all designed to address national security concerns raised by U.S. lawmakers.

According to the deal structure, TikTok’s investors will control 80 percent of the new entity. Oracle, Silver Lake, and MGX will each hold 15 percent stakes. Additional investors include an investment firm linked to Dell’s CEO.

With the agreement now in place, TikTok will remain available to more than 200 million users across the United States. The move also removes a major regulatory cloud that has hovered over the platform for several years.

In other tech news, Snapchat has rolled out updates to its Family Center for stronger moderation tools, while Spotify has expanded AI Prompt Playlists to users in the U.S. and Canada.

Meanwhile, ElevenLabs has released its first AI-generated music album featuring real artists.

Via Engadget