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Friday, Mar 20, 2026
Outside the box.
United States and China Approve TikTok U.S. Spin-Off, Clearing Path for Majority-American Ownership
After years of legislative pressure and negotiation, both governments endorse a divestment framework that preserves TikTok’s U.S. presence under American control
The United States and China have officially approved a long-sought agreement to restructure the ownership of TikTok’s U.S. operations, a senior White House official confirmed, averting a potential nationwide ban and setting the stage for a majority-American-controlled spinoff.
The accord comes after several years of bipartisan pressure in Washington, culminating in a 2024 law that required China-based ByteDance Ltd. to divest control of TikTok’s U.S. arm or face restrictions on app store access and hosting services under the Protecting Americans from Foreign Adversary Controlled Applications Act.
Under the approved framework, TikTok’s U.S. business will transition into a new American-domiciled entity overseen by a majority-American board and investor group.
ByteDance will retain a minority stake of just under twenty per cent, consistent with legislative limits, while the remaining shares will be held by U.S. investors led by technology firms including Oracle, global private equity Silver Lake, and Abu Dhabi-backed MGX.
Data protection, content moderation and governance responsibilities will reside with the U.S. company, with U.S. user data stored domestically.
The agreement effectively clears a key hurdle ahead of a government deadline and brings an end to weeks of speculation about TikTok’s future in the United States.
TikTok briefly went offline in early 2025 after the statutory deadline passed without a deal, but service was restored after President Donald Trump issued executive orders delaying enforcement and empowering negotiations with both ByteDance and Chinese authorities.
American users are expected to retain their accounts, followers, content and viewing history, with little immediate change to the app’s appearance or functionality.
Officials in both capitals hailed the accord as a pragmatic resolution to years of uncertainty, highlighting new safeguards to protect American data and reduce foreign influence.
TikTok’s new U.S. structure will operate under stricter data security protocols and be governed by directors with national security and cybersecurity expertise.
While ByteDance retains its minority interest, the shift to American operational control signals a significant moment in U.S. technology policy and U.S.-China economic relations.
The accord comes after several years of bipartisan pressure in Washington, culminating in a 2024 law that required China-based ByteDance Ltd. to divest control of TikTok’s U.S. arm or face restrictions on app store access and hosting services under the Protecting Americans from Foreign Adversary Controlled Applications Act.
Under the approved framework, TikTok’s U.S. business will transition into a new American-domiciled entity overseen by a majority-American board and investor group.
ByteDance will retain a minority stake of just under twenty per cent, consistent with legislative limits, while the remaining shares will be held by U.S. investors led by technology firms including Oracle, global private equity Silver Lake, and Abu Dhabi-backed MGX.
Data protection, content moderation and governance responsibilities will reside with the U.S. company, with U.S. user data stored domestically.
The agreement effectively clears a key hurdle ahead of a government deadline and brings an end to weeks of speculation about TikTok’s future in the United States.
TikTok briefly went offline in early 2025 after the statutory deadline passed without a deal, but service was restored after President Donald Trump issued executive orders delaying enforcement and empowering negotiations with both ByteDance and Chinese authorities.
American users are expected to retain their accounts, followers, content and viewing history, with little immediate change to the app’s appearance or functionality.
Officials in both capitals hailed the accord as a pragmatic resolution to years of uncertainty, highlighting new safeguards to protect American data and reduce foreign influence.
TikTok’s new U.S. structure will operate under stricter data security protocols and be governed by directors with national security and cybersecurity expertise.
While ByteDance retains its minority interest, the shift to American operational control signals a significant moment in U.S. technology policy and U.S.-China economic relations.
