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

TikTok announced an agreement allowing it to continue operating in the United States.

But as the platform’s future in the country seems assured, its 200 million American users should see some changes.

A majority-American board of directors now owns and operates a separate entity controlling TikTok in the United States.

Backed primarily by American investors, the new TikTok USDS Joint Venture LLC is led 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 company.

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

Led by Trump ally Larry Ellison, Oracle already oversees TikTok’s U.S. user data under an earlier deal set up for security reasons called Project Texas.

But the company will now further secure the application, in particular by retraining and updating its recommendation algorithm based on data from American users.

TikTok says 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 face continued scrutiny. Some Democrats have already expressed concern that Trump’s ties to TikTok’s new group of investors could end up limiting what is shared on the platform.

“Americans will be no better off if a sale of TikTok results in the company being in the hands of Trump cronies backed by foreign funding,” Democratic Sen. Ron Wyden said in December, before the deal was finalized.

Meanwhile, Sen. Ed Markey reportedly said Friday that Congress should investigate the deal, citing a “lack of transparency” and details.

What TikTok and those behind its new US joint venture will want to avoid is too much disruption – so it seems unlikely that users will download a new app.

The United States would be the platform’s largest global market, with 200 million users, according to TikTok.

It faces growing competition from Instagram and its Reels short-video feature – which parent company Meta has boosted into its apps used by billions.

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

“Behind the scenes, TikTok is likely working hard to assure advertisers that its business will continue as normal,” says Jasmine Enberg, co-CEO of Scalable, a media and podcast company 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 will not be disrupted.”

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

It indicates that the contract that users accept is now between them and the platform’s new American entity, TikTok USDS Joint Venture.

There are several 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 American entity “does not endorse any content” on the platform nor does it reflect its opinions.

US users who continue to use TikTok starting January 22 must also accept the limitations of generative AI, such as its ability to generate inaccurate, misleading, inappropriate or illegal content.

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

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

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

But we do know that its recommendation algorithm will be retrained on US user data, raising concerns among some about whether the highly personalized content it offers could change.

Enberg says adjustments to the algorithm could affect what people see or even create, potentially “leading to a different appearance” for U.S. users.

Dr Kokil Jaidka, of the National University of Singapore, has previously said that while it is “unlikely that the app will suddenly be different” for most, “changes are plausible”.

The differences that appear to US users are likely “subtle and incremental”, such as weaker customization.

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

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

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

“What’s important here is that you’re still using the same app, the same account and overall the same recommendation engine,” he said.

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

Using a licensed version of TikTok’s algorithm to power its U.S. version could also present “constraints around data access, update frequency and integration with TikTok’s global systems,” Jaika said.

But she said the 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 categorized and moderated.

However, she said many unknowns remain, and many depend “on how ByteDance fine-tunes the weakest links – such as data separation, update frequency and monitoring mechanisms – without degrading performance.”

TikTok, for its part, 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 creators will still be visible and companies will be able to maintain a global reach.

“It’s not that the world is disappearing, but rather that domestic content could crowd out international content over time,” Navarra said.

“In other words, global content remains, but the balance could suddenly shift.”

CapCut and Lemon8 are two other popular apps owned by ByteDance that US users have access to.

Previously, it was unclear what the law requiring the sale or ban of TikTok in the United States could mean for its sister apps and their users.

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

Their future in the US now appears assured, with TikTok saying that “guarantees provided by the joint venture will also cover CapCut, Lemon8 and a portfolio of other apps and websites in the US.”