Who owns TikTok now and how might this change for US users? & more related News Here

TikTok has announced a deal that allows it to continue operating in the US.

But with the platform’s future in the country seemingly secure, its 200 million US users are expected to see some changes.

The majority American board now owns and operates a separate entity that controls TikTok in the US.

Backed mostly by US investors, the newly established TikTok USDS Joint Venture LLC is governed by a board of seven directors.

TikTok Chief Executive Shou Zi Chew is one of them, and its Chinese owner ByteDance will retain a 19.9% ​​stake in the business.

The content recommendation algorithm at the heart of TikTok – determining which videos will appear on the app’s For You feed – has been licensed to tech firm Oracle.

Under the leadership of Trump ally Larry Ellison, Oracle already oversees TikTok US user data under a previous arrangement established over security concerns called Project Texas.

But the company will now make the app more secure, including retraining and updating its recommendation algorithms based on US user data.

TikTok says both the algorithms and US user data will be protected in “Oracle’s secure US cloud environment”.

The people behind TikTok and its new US joint venture would like to avoid too much disruption – so users may find it impossible to download a new app.

According to TikTok, the US is considered the platform’s largest global market with 200 million users.

It faces increasing competition from Instagram and its short-form video feature Reels – which parent company Meta has promoted across its apps used by billions of people.

And experts and analysts have warned that changing TikTok too much or requiring users to switch to a new app could upset users and advertisers.

“Behind the scenes, TikTok is working hard to reassure advertisers that its business will remain as normal,” says Jasmine Enberg, co-CEO of Scalable, a media company and podcast focused on the creator economy.

“While requiring users to download a new app seems unlikely, brand partners will want to know that their TikTok strategies will not be disrupted.”

TikTok updated its terms of service for US users as soon as the deal closed on Thursday.

It said the contract that users have agreed to is now between them and the platform’s new US entity, TikTok USDS Joint Venture.

There are many changes. A new rule states that children under 13 cannot use TikTok outside of its specific “under 13 experience.”

Another point states that the new US entity “does not endorse any content” on the platform, nor does it reflect its views.

US users who continue to use TikTok after January 22 must also agree to the limitations of generative AI – such as its ability to generate false, misleading, inappropriate or unlawful content.

“By using the Platform, including its generative AI-enabled features, you acknowledge and assume this risk,” it says.

It’s unclear exactly what changes US users will see in their TikTok app and feed as a result of the deal.

The BBC has asked TikTok if and when its US experience will change.

But we do know that its recommendation algorithm will be re-trained on US user data – a concern for some whether the highly personalized content it provides could change.

Enberg says changes to the algorithms could affect what people see or even create, potentially leading to “a different look and feel” for US users.

Dr Kokil Jaidka of the National University of Singapore previously said that while the app “is unlikely to feel suddenly different” for most people, “the changes are appreciable”.

The differences noticed by US users are likely to be “subtle and gradual” – such as weaker personalisation.

But locally controlled, user-facing features like TikTok’s short videos, influencer culture and livestream shopping can’t replace that, he said.

“There’s a big incentive here to keep what works,” social media expert Matt Navara told the BBC.

He said changes to the algorithm could lead to “short-term tuning issues” such as reduced reach, repetitive content or random recommendations, and that TikTok would like to maintain its algorithm as its “crown jewel”.

“The important thing here is that you’re still using the same app, the same account, and largely the same recommendation engine,” he said.

“I think the goal is continuity, not reinvention.”

Using a licensed version of TikTok’s algorithm to power its US version could also lead to “barriers to data access, update frequency and integration with TikTok’s global systems,” Zaika said.

But he said the changes could affect the For You feed – which “learns from a massive, cross-region feedback loop” to surface relevant content – ​​as well as how videos are ranked and moderated.

However, he said many unknowns remain, with much depending on “how ByteDance fixes the weak links – such as data separation, update frequency and inspection mechanisms – without worsening performance”.

TikTok, meanwhile, says the joint venture will be able to make the app compatible with other apps and regions to give US users a “global experience.”

Its press release claims that American manufacturers will still be able to be found and businesses will be able to maintain global reach.

“It’s not that the world disappears, but domestic content can crowd out international content over time,” Navarra said.

“In other words, the global content remains intact – but the balance may change suddenly.”

CapCut and Lemon8 are two other popular apps owned by ByteDance that are used by US users.

At first, it was a little unclear what legislation requiring a sale or ban of TikTok in the US might mean for its sister apps and their users.

But when the ban went into effect briefly in January 2025, TikTok as well as others “went dark” in the US.

Their future in the US now appears to be secure, with TikTok saying that “the security measures provided by the joint venture will also include CapCut, Lemon8, and the portfolio of other apps and websites in the US”.