TikTok announced Thursday the successful finalization of an ownership restructuring that establishes a majority American-owned entity committed to continuing support for small businesses using the platform for marketing and sales. The deal preserves TikTok’s role in the small business economy.
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. Oracle, Silver Lake, MGX, and Michael Dell’s firm create ownership understanding TikTok’s importance for small business marketing beyond just creator economy.
This settlement recognizes that TikTok serves millions of small businesses using the platform for customer acquisition, brand building, and direct sales through TikTok Shop. Small businesses often lack budgets for traditional advertising, making TikTok’s organic reach and affordable ads essential for growth. Local restaurants, boutiques, service providers, and online sellers built customer bases through TikTok. A ban would have eliminated this marketing channel, particularly hurting businesses lacking alternative marketing resources.
Leadership of the American entity will be entrusted to Adam Presser as CEO, with understanding of the platform’s business ecosystem including small business users. The seven-member board provides governance supporting continued platform operation serving small business needs. Shou Chew participates as a board member.
The new US entity maintains business features while implementing security: comprehensive data protection, algorithm security, enhanced moderation, and software integrity address security concerns while preserving advertising tools, shopping features, and business analytics small businesses depend on. The recommendation algorithm undergoes US-data retraining while maintaining discovery mechanisms helping small businesses reach customers organically. Business support programs continue under American ownership. Both governments approved this small business-supporting resolution.