TikTok avoids US shutdown with new American entity — what it means for creators and the industry

After months of uncertainty and mounting political pressure, TikTok has officially secured its future in the United States. The company has closed a critical deal to establish a U.S.-based majority-owned entity that keeps the platform operational and addresses long-standing concerns from U.S. lawmakers about data security and foreign control.

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The new company — TikTok USDS Joint Venture LLC — is designed to function independently from TikTok’s Chinese parent, ByteDance, and will be overseen by a seven-member board that includes TikTok CEO Shou Chew and other U.S. executives.

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Why this matters

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Under the terms of the deal, TikTok’s U.S. operations continue to serve more than 200 million American users and millions of businesses, while implementing strict data and security safeguards that reflect concerns about foreign influence.

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Key aspects of the agreement include:

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• A U.S.-majority entity with American investors holding controlling stakes, while ByteDance remains a minority shareholder limited to 19.9%.
• TikTok’s user data and recommendation algorithm will be housed and managed within secure U.S. infrastructure, including regular third-party auditing and compliance with high cybersecurity standards.
• Critical roles on the board and executive team are filled by industry veterans — including Adam Presser as CEO of the new joint venture and Will Farrell leading data security.
• The new structure extends data protection and moderation controls across TikTok’s other apps in the U.S. market, such as CapCut and Lemon8.

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What this means for creators, artists and brands

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For musicians, creators, and businesses that rely on TikTok for exposure and engagement, this deal brings much-needed stability. The app’s future in the U.S. had been uncertain ever since lawmakers passed legislation requiring divestment from ByteDance or face a ban under the Protecting Americans from Foreign Adversary Controlled Applications Act.

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By creating a U.S. entity with robust oversight and protections, TikTok has not only avoided a shutdown — it has laid the groundwork for a more secure and resilient platform that can continue to be a vital part of the modern music and creator economy.

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This is a big moment for social platforms and the wider creator ecosystem. At Octiive, we’ll be watching closely to see how this new structure evolves and what it means for the strategies artists and labels use to grow their audiences.

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Source: Music Business Worldwide — “TikTok closes deal to form new American entity, dodging US shutdow

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