After years of political and legal uncertainty, TikTok has finally finalised a complex agreement to ensure the continuation of its immensely popular video-sharing platform within the United States. The deal, which was confirmed on Friday 23 January 2026, establishes a new US-based joint venture for the app, involving major investors Oracle, Silver Lake, and the Emirati firm MGX. While this averts an immediate ban, significant questions linger regarding potential alterations to the user experience and whether the arrangement genuinely addresses the core national security concerns that prompted the legislative action.
The Path to the Deal: Legislative Pressure and Extended Deadlines
The necessity for this agreement stemmed from decisive bipartisan action in the US Congress. Lawmakers, citing fears that the Chinese government could exploit the app for propaganda or data collection, passed legislation requiring TikTok to sever its ties with Beijing-based parent company ByteDance. President Joe Biden signed this into law, setting a firm deadline of January 2025 for a sale or face a ban. When that deadline arrived, the platform did indeed go dark temporarily.
However, on his first day in office, President Donald Trump issued an executive order to restore service while his administration pursued a negotiated solution. A series of subsequent orders repeatedly extended the operational deadline, creating a prolonged period of limbo that has now culminated in the current joint venture structure.
How the TikTok Experience May Evolve for American Users
Officially, TikTok states that American users can continue using the same app without downloading a new one. Yet, the substance of what appears on their personalised feeds is poised for change. The crux of the transformation lies in the algorithm—the proprietary code that curates the addictive, endless scroll of videos.
Under the deal, the US entity will license this algorithm from ByteDance but then undertake a process of "retraining" it exclusively on data from American users. This recalibration is certain to introduce subtle, and possibly more pronounced, shifts in content recommendations.
"The retrained algorithm means that the trends—and what dominates feeds—will feel distinctly American," explained Kelsey Chickering, an analyst at Forrester. "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?"
Jasmine Enberg, an analyst at eMarketer, highlighted the inherent risk: "Any noticeable changes made to a social media platform’s service raises the risk of alienating its audience." TikTok's press release assures that US creators will remain discoverable globally and businesses can maintain worldwide reach, but the mechanics of this interoperability with ByteDance's systems are unclear.
Concurrently, users will encounter an updated Terms of Service. Key revisions note that while users retain ownership of their content, TikTok can utilise it to operate or improve the platform. Furthermore, users are now responsible for labelling any AI-generated content they post, and Americans under 13 will be restricted to a tailored "Under 13 Experience."
Political Connections and Content Moderation Concerns
The deal's structure has drawn attention due to the political affiliations of key figures involved. Oracle co-founder Larry Ellison, who remains a top executive and one of the world's wealthiest individuals with a personal fortune estimated at $390 billion, has longstanding ties to the Trump administration. He played a role in earlier efforts to force ByteDance to sell TikTok.
These connections have sparked concerns about potential biases in content moderation under the new ownership. "If moderation happens to tilt toward one political viewpoint or fails to curb misinformation, TikTok risks a user exodus to rival platforms," warned Chickering, drawing parallels to the fallout witnessed during Twitter's transformation into X.
Unresolved Security Questions and Legislative Compliance
Critically, the agreement does not appear to fully resolve the security apprehensions that motivated the original law. The 2024 legislation explicitly prohibited "any cooperation with respect to the operation of a content recommendation algorithm" between ByteDance and a new American owner. The continued involvement of ByteDance—through licensing the very algorithm in question—creates a legal grey area regarding how this prohibition will be enforced and monitored in practice.
User and Creator Reactions: Relief Tempered by Caution
For small businesses built on the platform, the deal brings a welcome end to prolonged anxiety. Skip Chapman, co-owner of KAFX Body in Manasquan, New Jersey, launched his natural deodorant business on TikTok Shop in 2023. With 80% of his sales originating from the platform, the threat of a ban had loomed large.
"I’m mainly glad I can stop worrying about the potential of a TikTok ban," he said, expressing cautious optimism. However, he voiced a specific concern: "I’m a little concerned that the new owners might de-prioritise the e-commerce aspect of TikTok... Under new ownership, they could deprioritise it and focus more on creators doing other things... and that would have less of a positive effect on us."
Vanessa Barreat, owner of La Vecindad Mexican restaurant in Las Vegas, whose TikTok page boasts over 100,000 followers, typifies a watchful stance. The platform has drastically reduced her marketing costs and attracted tourists to her venue.
"I’m in a 'wait-and-see mindset' about the deal," she stated. "Anytime there’s a major shift or deal, there’s uncertainty, but I’m not operating from fear. TikTok has empowered so many voices that historically didn’t have access to platforms like this, and that impact doesn’t disappear overnight."
In summary, while the deal ensures TikTok's immediate survival in the critical US market, it inaugurates a new chapter fraught with technical, commercial, and political uncertainties. The retraining of its core algorithm, the scrutiny of its moderation policies, and the ongoing shadow of ByteDance's involvement mean the platform's future in America remains as complex and debated as its recent past.
