TikTok forms US entity, easing social media marketing concerns for mortgage pros

TikTok has finalized a deal to form a new U.S. entity with investors that include Oracle, Silver Lake and Emirati firm MGX, easing the threat of a nationwide ban and allowing the social media app to continue operating for more than 200 million American users.

The company said Thursday that the new TikTok U.S. joint venture will operate with safeguards aimed at addressing national security concerns, including U.S.-based data storage run by Oracle and protections around content moderation and software.

U.S. users will continue using the same app, although it’s not clear if the deal will impact the app’s content, users or their respective algorithms.

Mortgage companies were among the many business sectors concerned about a potential sale or ban of the app, since many use the platform for social media outreach efforts — especially those that target Gen Z and millennial consumers.

Jessica Reed, vice president of marketing, brand, recruiting and partnerships at AnnieMac Home Mortgage, said the deal is positive news for lenders and individual mortgage professionals.

“This deal brings clarity and stability. TikTok allows lenders to educate consumers, build trust and establish personal brands long before a borrower enters the application process. With greater confidence in the platform’s future, brands can invest more intentionally in consistent storytelling and early-stage borrower education.”

The Associated Press reported that Adam Presser, a former TikTok executive, will serve as CEO of the new venture, which will be overseen by a seven-member, majority-American board that includes TikTok CEO Shou Chew.

The deal follows years of uncertainty after Congress passed, and former President Joe Biden signed, a law requiring TikTok to divest from its Chinese parent, ByteDance, or face a ban by January 2025.

The app briefly went dark on Jan. 19, 2025, before President Donald Trump signed an executive order on his first day back in office that granted the app a 75-day extension while a deal was negotiated.

Trump celebrated the deal on Truth Social and thanked Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal.”

Under the agreement, TikTok’s content recommendation algorithm for U.S. users will be retrained and operated by the U.S. entity, with ByteDance licensing the technology while retaining a 19.9% stake.

Oracle, Silver Lake and MGX will each hold 15% ownership. The Associated Press noted that other investors include the investment firm of Michael Dell, the founder of Dell Technologies.