In a significant development, TikTok announced on Thursday the creation of a new U.S.-based entity, cementing an agreement that allows the popular social media app to continue its operations within the United States.

This move concludes a protracted saga where TikTok faced potential bans unless it separated from its Chinese parent company, ByteDance.

The newly formed entity, named TikTok USDS Joint Venture, is predominantly owned by American investors. Three U.S. firms, namely Silver Lake, Oracle, and MGX, will act as managing investors, each securing a 15 percent ownership stake in the venture.

ByteDance will maintain a 19.9 percent interest in the company. Other stakeholders include an investment firm associated with Michael Dell, CEO and founder of Dell Technologies, along with affiliates of Susquehanna International Group and General Atlantic, among others.

According to a press release issued on Thursday, TikTok USDS Joint Venture is tasked with safeguarding U.S. user data, applications, and algorithms by implementing robust data privacy and cybersecurity protocols.

“It will safeguard the U.S. content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications,” it added.

The spin-off aims to comply with a law passed by Congress in April 2024 requiring ByteDance to divest from TikTok or face a ban on U.S. networks and app stores. The measure received widespread bipartisan support in the face of privacy and national security concerns related to the app’s ties to China.

TikTok challenged the divest-or-ban law, but it was ultimately upheld by the Supreme Court just days before it was set to take effect. The app briefly went dark before receiving assurances from then-President-elect Trump.

Former President Biden declined to enforce the measure, which took effect on his last full day in office. Trump, who vowed to “save” TikTok during his 2024 campaign, quickly signed an executive order after his inauguration delaying enforcement for several months.

Trump repeatedly pushed back the deadline, as he sought to reach a deal with China that would allow the app to continue operating in the U.S. A deal briefly appeared close in April but was scuttled by the president’s announcement of wide-ranging reciprocal tariffs on dozens of countries, including China.

After an agreement was reached in September, Trump signed an executive order approving the deal to spin off TikTok’s U.S. business.