The hugely popular short-video app was due to be banned in the US in January 2025 if its Chinese owner, ByteDance, failed to spin-off its operations in the country to US investors

TikTok has finalized a deal to create a new American entity, avoiding the looming threat of a ban in the U.S. that has been in discussion for years.

The transaction’s completion is designed to meet a Jan. 22 deadline established by the Trump administration in an executive order that granted a 120-day stay on enforcing the federal ban.