After years of legal battles, geopolitical tension, and acquisition rumors, the TikTok drama in the US appears to have reached its next chapter. ByteDance has agreed to divest a major portion of TikTok’s US operations to a consortium of American investors, ending a prolonged standoff with the US government over national security concerns.
For marketers, this isn’t just a corporate shuffle. The sale introduces new stakeholders, redefines data governance, and opens the door to a potentially different TikTok experience for US users.
This article explores the deal’s details, political backdrop, and the implications for brands who rely on TikTok for reach, engagement, and cultural cachet.
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Atikah Amalia
What’s the new TikTok US deal?
As of last week, TikTok signed an agreement to divest 45% of its US operations to an American investor group. This consortium includes Oracle, Silver Lake, and MGX, according to a memo viewed by TechCrunch. ByteDance will retain a 20% stake, with the rest presumably distributed among other stakeholders.
The newly formed entity, “TikTok USDS Joint Venture LLC,” will handle US-specific operations, including content moderation, data governance, and algorithmic oversight. Oracle will lead as the designated security partner, managing data audits, replicating and retraining a new algorithm under US jurisdiction, and ensuring compliance with national security regulations.
The deal is set to close on January 22, 2026, but preparations are already underway. ByteDance will no longer have access to US user data or any control over the American algorithm.
Meanwhile, a Bloomberg report suggests that once the deal is finalized, TikTok may be discontinued in its current US form and replaced by a rebranded platform. The exact nature of this potential successor app remains unclear, adding more uncertainty for users and marketers alike.
Patrecia Meliana
How did we get here?
TikTok’s long-running clash with the US government has been unfolding since 2020. Here’s a quick summary of the key moments leading to the latest investor deal:
- July 2020: Trump signals plans to ban TikTok over national security concerns.
- August 2020: Executive order issued to ban TikTok in the US.
- September–November 2020: US courts block the ban, citing due process and lack of evidence.
- July 2021: Biden revokes the ban but raises ongoing data privacy concerns.
- December 2022: Congress passes a bipartisan bill targeting foreign-controlled social apps.
- March 2024: Lawmakers pass legislation forcing TikTok’s sale to a US-based company.
- April 2024: Biden signs the sell-off bill with a January 2025 compliance deadline.
- June 2024: Trump joins TikTok, gaining rapid traction.
- September 2024: Trump pledges to save TikTok if reelected.
- December 2024: US court upholds the sell-off law.
- January 2025: Supreme Court affirms the law. Trump grants a 75-day extension as president-elect.
- April 2025: Trump announces a second 75-day extension, delaying enforcement.
- January 2026: TikTok signs a divestment deal with US investors. Oracle, Silver Lake, and MGX take control of 45% of TikTok US.
TikTok’s US future is no longer a guessing game, but it’s far from settled. The new ownership deal adds a layer of stability, yet major changes to the platform’s structure, data practices, and algorithm are still ahead.
For marketers, this is the time to stay agile. Keep tracking user behavior, prepare for platform shifts, and build strategies that can flex with whatever comes next. The TikTok playbook is being rewritten — make sure your brand isn’t caught flat-footed.
What marketers should know
With the US version of TikTok set to operate under new ownership and governance, marketers need to stay sharp. The next phase of the platform could bring meaningful changes to content strategy, ad performance, and user behavior. Below are the key takeaways to help your team plan ahead.
1. Platform risk isn’t gone yet
The deal is moving forward, but the US version of TikTok may not look or function the same by 2026. Marketers should avoid overcommitting budget or strategy to a single app, especially one undergoing structural change. Keep testing content across YouTube Shorts, Instagram Reels, and newer contenders like Rumble.
2. Oracle’s oversight may reshape the algorithm
With Oracle in charge of retraining a US-specific TikTok algorithm, we could see changes in how content is surfaced. Engagement tactics that worked before may no longer perform the same. Brands should watch for shifts in content reach, trending formats, and ad targeting capabilities.
3. Prepare for a rebrand or relaunch
If the app gets rebranded or relaunched under new ownership, early adoption will matter. Think of it as TikTok 2.0. Brands who move quickly can earn organic reach before the platform becomes saturated again. Just be ready to onboard audiences to the new experience, whatever it ends up looking like.
4. Compliance and transparency will be key
With increased scrutiny around data handling and algorithmic fairness, expect tighter ad policies and more pressure to disclose sponsored content. Marketers should brush up on privacy best practices and ensure influencer campaigns remain compliant under evolving US standards.
TikTok isn’t disappearing, but it’s entering a new phase, with American investors calling more of the shots and ByteDance taking a back seat. For marketers, this means adapting to a potentially different algorithm, a new platform interface, and continued political unpredictability.
The key is flexibility. Stay informed, diversify your social mix, and keep your creative teams nimble enough to pivot when the next platform shift arrives.
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