TikTok said Thursday it has created a majority American-owned joint venture to run its U.S. operations, a move aimed at protecting Americans’ data and resolving national security concerns that had threatened to ban the popular video app, Barron’s reports.

Under the new structure, U.S. investors will control TikTok’s American business, while Chinese parent ByteDance will retain a 19.9% minority stake, staying below the ownership cap required under U.S. law. The arrangement allows TikTok to continue serving more than 200 million U.S. users and 7.5 million businesses.

President Donald Trump welcomed the deal on Truth Social, saying it preserves TikTok while putting ownership in American hands:

“I am so happy to have helped in saving TikTok!” Trump wrote. “It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.

Trump also thanked Chinese President Xi Jinping for approving the agreement:

“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal,” he added.

A central element of the agreement is data security.

TikTok said U.S. user data will be stored exclusively in Oracle’s secure cloud environment, with third-party cybersecurity audits and compliance with federal standards.

The joint venture will also hold decision-making authority over trust, safety, and content moderation policies for U.S. users, separating those functions from TikTok’s global operations.

Three investors — Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX — each hold 15% stakes.

Other investors include the Dell Family Office, affiliates of Susquehanna International Group, and General Atlantic. Oracle executive chairman Larry Ellison, a longtime Trump ally, was identified by Trump as a key figure in the deal.

The new entity will be governed by a seven-member board with a majority of American members, including TikTok CEO Shou Chew and executives from the investment firms.

TikTok executive Adam Presser was appointed CEO of the U.S. venture, with Will Farrell serving as chief security officer, reinforcing the focus on data protection and oversight.

The deal fulfills requirements of a 2024 law that ordered ByteDance to divest TikTok’s U.S. operations or face a ban, following warnings from U.S. officials that China could use the app to access Americans’ personal data or influence content through its algorithm.

Industry analysts said the agreement should reassure users and advertisers by placing ownership, governance, and data security firmly under U.S. control, though questions remain about how the new structure will operate over time.