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TikTok: Agreement to Create New Consortium in the US – Trump Satisfaction, Thanks to Xi

Published January 23, 2026, 10:20
TikTok: Agreement to Create New Consortium in the US – Trump Satisfaction, Thanks to Xi

TikTok announced yesterday, Thursday, that it has created a consortium primarily controlled by American investors to manage its operations in the US, ending a long legal dispute that threatened to lead to its ban in the country. The platform has signed agreements with major investors, including Oracle, Silver Lake, and the MGX investment fund from the United Arab Emirates, to create the new TikTok U.S. consortium. The new entity will operate under “clearly defined safeguards that protect national security through comprehensive data protection measures, algorithm security, content oversight, and software guarantees for users in the US,” the company said in a statement. American users will continue to use the same application. US President Donald Trump welcomed the agreement with a post on Truth Social, specifically thanking Chinese President Xi Jinping “for cooperating with us and ultimately approving the deal.” He also added that he hopes “to be remembered by those who use and love TikTok” in the future. The Chinese government has not yet publicly commented on TikTok’s announcement. Earlier, a spokesperson for the Chinese embassy in Washington said that “China’s position on TikTok is consistent and clear.” The head of the new corporate entity as CEO will be Adam Presser, former head of global operations and trust and safety at TikTok. He will work with a seven-member board of directors, predominantly American, which includes TikTok CEO Shou Zi Chew. The Algorithm of Discord The agreement ends years of uncertainty about the future of the popular platform in the US. Following broad bipartisan support in Congress and the signing of related legislation by former President Joe Biden, TikTok would be banned in the US if it was not separated from Chinese ByteDance. The deadline expired in January 2025, and for a few hours the platform actually “crashed.” However, on the first day of his new term, Trump signed an executive order maintaining the platform’s operation, giving time to reach an agreement. In addition to storing the data of American users on Oracle infrastructure within the US, the consortium will also focus on TikTok’s algorithm. The content recommendation algorithm will be retrained, tested, and updated based on user data from the US, according to the announcement. The algorithm was a key point of contention for national security. China had previously maintained that, under the law, the algorithm must remain under Chinese control. However, US legislation stipulates that any divestment of TikTok must include a complete separation – especially of the algorithm – from ByteDance. According to the terms of the agreement, ByteDance will grant…