At a Glance
- TikTok will keep operating in the U.S. after a new joint venture deal.
- The change will keep the same app but retrain the algorithm on U.S. data.
- The deal involves investors like Oracle, Silver Lake, MGX, and ties to former President Trump.
Why it matters: American users and creators can continue using TikTok, but the new algorithm may shift the content they see.
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TikTok has finally reached a deal that keeps the popular video-sharing platform running in the United States, ending months of uncertainty. The agreement creates a new U.S. joint venture that will own the American version of the app while the Chinese company ByteDance retains a licensing role.
Deal Overview
The joint venture was formed after a law passed by Congress and signed by President Joe Biden would have banned the app in January 2025 if a new owner was not found. President Donald Trump signed an executive order on his first day in office to keep TikTok operating while a sale was negotiated, and a series of orders kept the deadline extended until the deal was finalized.
The new ownership structure includes major investors such as Oracle, Silver Lake, and the Emirati investment firm MGX. These investors will hold the majority stake in the U.S. entity, while ByteDance will license the algorithm that powers the feed.
How the Algorithm Will Change
American users will not download a new app; they will continue using the current TikTok interface. However, the recommendation engine that delivers videos will be retrained on U.S. user data.
- The algorithm will be licensed from ByteDance.
- It will then be adjusted to reflect U.S. preferences.
- Small changes to the feed are expected, but the exact impact on user experience is unclear.
Analyst Jasmine Enberg of eMarketer warned that any noticeable shift could alienate users. Forrester analyst Kelsey Chickering added that while global content will still appear, its ranking will change, making the feed feel distinctly American.
The updated Terms of Service confirm that users keep ownership of their content, but TikTok can use it to improve the platform.
Ownership and Political Ties
Larry Ellison, co-founder of Oracle and a top executive at the new venture, has a long history with the Trump administration. He helped push for ByteDance to sell TikTok during President Trump’s first term.
Ellison’s personal fortune is estimated at $225 billion, and he has been involved in media deals such as Skydance’s $8 billion merger with Paramount.
These connections have raised concerns among some users about potential bias in content moderation. Chickering noted that if moderation leans toward one viewpoint or fails to curb misinformation, TikTok could lose users to competitors.
Vice President JD Vance, who led the White House effort to find a U.S. buyer, participated in negotiations with Chinese officials in Madrid in September. Trump and Vance also joined phone meetings during that trip, pressuring China to agree to the deal.
Security Concerns and Law
Lawmakers worried that the Chinese government could use TikTok’s algorithm to push propaganda or collect data. The law that required divestment specifically prohibits “any cooperation with respect to the operation of a content recommendation algorithm” between ByteDance and a new U.S. owner.
Because ByteDance will still license the algorithm, it is unclear how the law’s prohibition will be interpreted. The deal does not fully resolve these security concerns.
Creators’ Reactions
Skip Chapman, owner of KAFX Body in New Jersey, launched his TikTok shop in April 2023. He said the deal gives him peace of mind that the platform will remain available.
> “I’m mainly glad I can stop worrying about the potential of a TikTok ban,” Chapman said. “I’m cautiously optimistic the deal will be good for TikTok and my shop, but I’m a little concerned that the new owners might de-prioritize the e-commerce aspect of TikTok.”
Vanessa Barreat, owner of La Vecindad Mexican restaurant in Las Vegas, has a TikTok page with over 100,000 followers. She expressed a “wait-and-see” stance.
> “Anytime there’s a major shift or deal, there’s uncertainty, but I’m not operating from fear,” Barreat said. “TikTok has empowered so many voices that historically didn’t have access to platforms like this, and that impact doesn’t disappear overnight.”
Key Takeaways
- The new joint venture keeps TikTok alive in the U.S. but introduces a retrained algorithm.
- Ownership now rests with U.S. investors, while ByteDance licenses the recommendation engine.
- Political ties and security concerns remain, especially regarding algorithmic transparency.
- Creators are relieved but watchful of how the new owners may affect commerce and content moderation.
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TikTok will continue to be a major platform for U.S. users, but the future of its feed and the handling of data remain under scrutiny as the new ownership structure takes shape.
