TikTok Resolves Future Under Framework Granting Presidential Compliance Authority

TikTok announced Thursday the successful finalization of an ownership restructuring that satisfies requirements under legislation granting the President authority to determine compliance. The deal demonstrates how executive discretion shaped the final resolution of the ban threat.
The completed transaction reduces ByteDance’s ownership to a 19.9% minority stake, while American investors collectively control 80.1% of the new US-based company. The American ownership group features three primary stakeholders with equal shares: Oracle at 15%, Silver Lake at 15%, and MGX at 15%. Michael Dell’s investment firm also contributes.
This settlement operates under legislation passed by Congress in 2024 that required TikTok to divest from Chinese ownership but notably granted the President authority to decide whether proposed deals comply with the law’s requirements. This presidential discretion proved critical, as President Trump used executive orders to delay enforcement while facilitating negotiations, then ultimately determined that the finalized deal satisfies legislative requirements.
The restructured American TikTok will be led by Adam Presser as CEO, in a structure that meets presidential determinations of adequate American control. Strategic oversight comes from a seven-member board of directors with an American majority and cybersecurity experts, satisfying the governance framework outlined in President Trump’s September executive order. Shou Chew will participate as a board member.
The new US entity implements safeguards that meet presidential compliance determinations, including comprehensive data protection protocols, secured algorithms, enhanced content moderation, and software integrity measures. The platform’s recommendation algorithm undergoes complete retraining based exclusively on US user data. President Trump exercised his authority under the legislation to determine that this structure complies with requirements, publicly celebrating the agreement and thanking Chinese President Xi Jinping. Both governments have approved the arrangement under this presidential authority framework.