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

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

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

A majority-American board now owns and operates a separate entity controlling TikTok in the US.

Backed by mostly 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 among 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 show up on the app’s For You feed – has been licensed to tech firm Oracle.

Headed by Trump ally Larry Ellison, Oracle already oversees TikTok US user data under a previous arrangement set up over security concerns called Project Texas.

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

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

The deal may be done, but it is likely to receive continued scrutiny. Some Democrats have already voiced concern that the ties between Trump and TikTok’s new investor group could end up limiting what gets shared on the platform.

“Americans won’t be any better off if a TikTok sale ends up with the company in the hands of Trump cronies backed by foreign funding,” Democrat Senator Ron Wyden said in December ahead of the deal being finalised.

Meanwhile Senator Ed Markey reportedly said on Friday Congress should investigate the agreement, citing a “lack of transparency” and detail.

Something TikTok and those behind its new US joint venture will be keen to avoid is too much disruption – so making users download a new app seems unlikely.

The US is believed to be the platform’s largest global market, with 200 million users, according to TikTok.

It faces growing competition from Instagram and its short form video feature Reels – which parent firm Meta has boosted within its apps used by billions.

And experts and analysts have warned changing TikTok too much or requiring users to move to a new app could put users and advertisers off.

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

“While the need for users to download a new app seems unlikely, brand partners will want to know that their TikTok strategies won’t be disrupted.”

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

It says the contract users agree to is now between themselves and the platform’s new US entity, TikTok USDS Joint Venture.

There are several changes. One new rule says children under the age of 13 cannot use TikTok outside of its specific “Under 13 Experience”.

Another point says 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 from 22 January also must agree to the limitations of generative AI – such as its potential to generate inaccurate, misleading, inappropriate or unlawful content.

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

Exactly what changes US users will see to their TikTok app and feeds, as a result of the deal, remains unclear.

The BBC has asked TikTok what will change in its American experience, and when.

But we know its recommendation algorithm will be retrained on US user data – sparking concern for some over whether highly personalised content it serves could change.

Enberg says algorithm tweaks 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 while the app is “unlikely to suddenly feel different” for most, “changes are plausible”.

Differences that do appear to US users are likely to be “subtle and gradual” – such as weaker personalisation.

But locally-controlled, user-facing features such as TikTok’s short videos, influencer culture and livestream shopping may not change, she said.

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

He said changes to an algorithm can bring “short-term tuning issues” such as less reach, repetitive content or random recommendations, and TikTok would want to maintain its algorithm as its “crown jewel”.

“What’s important here is you’re still using the same app, the same account and broadly 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 present “constraints around data access, update frequency, and integration with TikTok’s global systems,” Jaika said.

But she said changes could impact the For You feed – which “learns from massive, cross-regional feedback loops” to surface relevant content – as well as how videos are ranked and moderated.

However she said many unknowns remain, with much depending “on how ByteDance tweaks the weaker links – such as data separation, update frequency, and oversight mechanisms – without degrading 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 US creators will still be discoverable and businesses will be able to maintain global reach.

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

“In other words, global content stays – but the balance may suddenly shift.”

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

Previously, it was slightly unclear what the law requiring TikTok’s sale or ban in the US could mean for its sister apps and their users.

But both “went dark” in the US alongside TikTok when the ban briefly took effect in January 2025.

Their future in the US now appears to be secured, with TikTok saying “safeguards provided by the Joint Venture will also cover CapCut, Lemon8, and a portfolio of other apps and websites in the US”.