Who owns TikTok now and how could it change for US users?

TikTok has announced a significant deal allowing it to continue operating in the United States, a move that will bring about a series of changes for its estimated 200 million American users. The platform’s future in the country, which has been under intense scrutiny, appears to be secured through a restructuring that places ownership and operational control of the US entity in American hands.

At the heart of this new arrangement is the establishment of TikTok USDS Joint Venture LLC, a separate entity that will govern TikTok’s operations within the United States. This new venture is backed by a majority of American investors and is overseen by a seven-director board, which includes TikTok’s chief executive, Shou Zi Chew. While the platform’s Chinese owner, ByteDance, will retain a 19.9% stake, the crucial operational and governance levers will now reside with this US-based leadership.

A key component of the deal involves the licensing of TikTok’s highly influential content recommendation algorithm to Oracle, a prominent tech firm headed by Trump ally Larry Ellison. This algorithm, which dictates the personalized "For You" feed experience for millions, will be housed and managed by Oracle. This arrangement builds upon Project Texas, a previous security initiative where Oracle already managed TikTok’s US user data. Now, Oracle will take on a more expansive role, retraining and updating the algorithm using US user data. Both TikTok and Oracle assert that the algorithm and US user data will be safeguarded within Oracle’s secure US cloud environment, aiming to alleviate national security concerns that have long plagued the platform.

For the vast majority of TikTok’s 200 million US users, the immediate concern is whether they will need to download a new application. Both TikTok and the newly formed US joint venture are keen to avoid significant disruption to their user base, recognizing the potential for users and advertisers to be alienated by such a move. The US represents TikTok’s largest global market, and any drastic changes could push users towards competitors like Instagram’s Reels feature, which Meta, its parent company, has actively promoted across its vast network of apps.

Industry experts, such as Jasmine Enberg, co-CEO of Scalable, a media company focused on the creator economy, emphasize the importance of maintaining business as usual for advertisers. "Behind the scenes, TikTok is likely working hard to assure advertisers it will remain business as normal," Enberg stated. While a new app download seems improbable, brand partners will be looking for assurances that their TikTok strategies will not face significant disruption.

Accompanying this structural shift, TikTok updated its terms of service for US users on Thursday, the same day the deal officially closed. The revised contract establishes that users are now agreeing to terms with the new US entity, TikTok USDS Joint Venture. Several notable changes have been implemented. Notably, children under the age of 13 will be restricted from using TikTok outside of a specially designed "Under 13 Experience." Furthermore, the new US entity explicitly states that it "does not endorse any content" on the platform and that the content does not reflect its views. A significant addition also addresses the limitations of generative AI. US users who continue to engage with TikTok from January 22nd onwards must acknowledge and accept the inherent risks associated with generative AI, including its potential to produce inaccurate, misleading, inappropriate, or unlawful content. The updated terms clearly state, "By using the platform, including its generative AI-enabled features, you recognise and assume this risk."

The precise impact of this deal on the user experience within the TikTok app and its feeds remains somewhat unclear, and the BBC has sought clarification from TikTok regarding specific changes and timelines for American users. However, the retraining of the recommendation algorithm on US user data has raised concerns about potential alterations to the highly personalized content users have come to expect. Experts like Dr. Kokil Jaidka of the National University of Singapore suggest that while the app is "unlikely to suddenly feel different" for most, "changes are plausible." These alterations are expected to be "subtle and gradual," potentially manifesting as weaker personalization. However, core user-facing features, such as short-form videos, influencer culture, and livestream shopping, are anticipated to remain largely unchanged.

The use of a licensed version of TikTok’s algorithm for the US version could introduce "constraints around data access, update frequency, and integration with TikTok’s global systems," according to Jaika. This might affect the "For You" feed, which relies on extensive cross-regional feedback loops to surface relevant content, as well as video ranking and moderation processes. Significant unknowns persist, with much depending on "how ByteDance tweaks the weaker links – such as data separation, update frequency, and oversight mechanisms – without degrading performance." Nevertheless, TikTok maintains that the joint venture will ensure compatibility with other apps and regions, providing US users with "a global experience." The company’s press release asserts that US creators will continue to be discoverable, and businesses will retain their global reach.

The implications for other ByteDance-owned apps popular in the US, such as CapCut and Lemon8, have also been addressed. Previously, the potential impact of a TikTok ban or sale on these sister apps was uncertain. However, both CapCut and Lemon8 experienced brief unavailability in the US alongside TikTok when a ban was temporarily enacted in January 2025. Their future in the US now appears secure, as TikTok has confirmed that the safeguards provided by the Joint Venture will extend to CapCut, Lemon8, and a portfolio of other apps and websites operating within the United States. This comprehensive approach aims to ensure a consistent operational framework across ByteDance’s digital ecosystem in the US.