TikTok Board Reshaped: U.S. Firms Secure 6 of 7 Seats

- A Madrid agreement ensures TikTok avoids a U.S. ban by January 2025. - American firms will control the board, algorithm, and $170 million in user data, with Oracle as a security partner. On September 20, 2025, Reuters reported that ByteDance and U.S. lawmakers reached an agreement in Madrid. The deal transfers TikTok's U.S. operations to American firms, averting a January 2025 ban. This landmark agreement follows months of negotiations addressing U.S. national security concerns and grants American companies majority control over TikTok’s U.S. operations. Under the new structure, TikTok’s U.S. board of directors will have 7 seats, and Americans will hold 6. A cornerstone of the deal is exclusive U.S. control over the app’s algorithm and data for 170 million American users. ByteDance will retain a minority stake of less than 20%, while Oracle will act as TikTok’s security partner to ensure user data is stored within the United States and remains inaccessible to Chinese authorities. According to Bloomberg, Oracle, venture capital firm Andreessen Horowitz, and private equity fund Silver Lake Management LLC will fund the transition. White House Press Secretary Karoline Leavitt commented that the deal prioritizes protecting American user data while adhering to national security demands. The United States and China solidified this agreement during broader trade discussions, and a direct phone call between President Donald Trump and Chinese President Xi Jinping reportedly played a decisive role in greenlighting the plan. In response, China’s Commerce Ministry reiterated its call for a fair and non-discriminatory business environment for foreign enterprises, expressing optimism that the agreement would serve the interests of both nations. For TikTok, this deal is a critical step forward, allowing the company to maintain its foothold in the lucrative U.S. market amid escalating global data security concerns. As of September 20, the app remains operational, and preparations are underway to implement the ownership shift.