TikTok announced Thursday the successful finalization of an ownership restructuring that establishes a majority American-owned entity governed by a board of directors with an American majority as legislation specifically required. The deal implements legislatively-mandated governance structure.
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 through Oracle, Silver Lake, MGX, and Michael Dell’s firm. This ownership foundation supports the legislatively-required board structure.
This settlement implements specific governance requirements from congressional legislation and presidential executive orders. The law didn’t just require American ownership but specified governance structure: a seven-member board with an American majority composed of cybersecurity and national security experts. This precise specification recognizes that governance structure determines actual control—minority ownership with board control could enable continued foreign influence, while majority ownership with passive governance might not provide adequate oversight. The required structure ensures both ownership and governance align.
Leadership of the American entity will be entrusted to Adam Presser as CEO, reporting to the seven-member board of directors structured exactly as legislation mandated. The board has an American majority—at least four of seven members are American citizens—and is composed specifically of individuals with cybersecurity and national security expertise as required. This governance structure provides qualified American oversight. Shou Chew participates as one board member within the seven-member structure.
The new US entity operates under this American-majority board governance implementing comprehensive security: the board oversees data protection protocols, algorithm security measures, content moderation programs, and software integrity verification. The American-majority board with security expertise ensures adequate oversight rather than rubber-stamp governance. The recommendation algorithm retraining proceeds under board oversight. Both governments approved this legislatively-mandated governance structure.