On January 22, the primarily American‑owned TikTok USDS Joint Venture LLC finalized a deal with ByteDance to create a new US TikTok. MGX, Oracle, and Silver Lake will hold about 45% of US operations, while ByteDance retains just under 20%. The joint venture will oversee US data security, algorithm, and software assurance, as well as content moderation.
In the end, it’s amazing TikTok has survived so much political whiplash. The company made it through an executive order and a bipartisan law passed by Congress, not to mention a day of darkness, a Supreme Court case, and many ban extensions. Its staying power proves just how embedded it is in US culture. Sixty-seven percent of online youths ages 12 to 17 report using it weekly, and nearly 50% of US online adults under 45 report using it at least weekly.
TikTok In The US Won’t Be Exactly The Same
A signed TikTok deal may look like a win for the White House, but is it a win for consumers, creators, and advertisers? TikTok’s power lies in its content graph — an algorithm that learns from thousands of user signals to deliver hyperrelevant, highly addictive videos. Our data shows that nearly half of US adults under 35 call TikTok addictive, more than any other platform. With a US joint venture retraining that algorithm on domestic data and moderating content, the experience will change — maybe for the better, maybe not. One thing’s certain: TikTok in the US won’t be exactly the same as it was before. Here’s what US TikTok users and advertisers should expect:
Access to global content will remain. TikTok confirmed there will be global interoperability. This means global content will make it into US feeds, US creators can reach users worldwide, and businesses can continue selling across borders. Also, US users won’t have to download a new app. This is very good news. In short: The US experience won’t be geofenced into a domestic-only app.
Feeds will feel distinctly American. One real divergence will be the algorithm’s new output. TikTok’s US algorithm will now be trained on US data, so the content that trends — and what dominates feeds — will feel distinctly American. Global content will still appear, but its ranking will change. This matters because the algorithm is the heartbeat of the app’s addictive experience. The question becomes: Will a US-centric feed supercharge engagement, or will it chip away at TikTok’s cultural cachet?
Content moderation will be a crapshoot. The new US TikTok ownership will also take the reins on content moderation — a shift that could redefine what shows up in American feeds. If moderation tilts toward one political viewpoint or fails to curb misinformation, TikTok risks a user exodus to rival platforms. We’ve seen this movie before: Twitter’s transformation into X triggered fallout from users and advertisers. For now, it’s speculation; it remains to be seen how new leadership will wield this power and whether moderation policies will evolve.
Advertising ops shouldn’t change much, but performance might. Commercial activities, including e-commerce, advertising, and marketing, will remain with ByteDance. This should mean that the way you buy and manage commerce activities will continue as before. What’s unknown is whether media performance will change — for better or worse — in the US market. I expect one big outcome (especially in the short term) will be channel diversification from creators and advertisers to safeguard against performance dips.
Forrester clients, schedule a guidance session with me to discuss your social media and creator strategy for 2026.
