Understanding TikTok’s New Ownership: What Does It Mean?

TikTok’s U.S. operations have undergone a major shift. No longer owned solely by its Chinese parent company, ByteDance, TikTok in the United States is now run by a new entity, TikTok USDS Joint Venture LLC, according to a press release. Established on Jan. 22, 2026, this joint venture is majority-owned by U.S. and allied investors, with ByteDance retaining less than 20% ownership. Major stakeholders include Oracle, Silver Lake, MGX, and other investors such as the Dell Family Office, Vastmere Strategic Investments, and Alpha Wave Partners.

Why is TikTok undergoing a change in ownership?

The change was driven by U.S. national security concerns over foreign access to American user data and the platform’s algorithm. The move complies with an executive order signed in September 2025 by the Trump Administration, designed to ensure that TikTok’s U.S. operations would be majority American-owned while maintaining user access to the platform. By shifting control, TikTok can continue serving millions of users and businesses in the U.S. without risking a government-mandated ban, the company claimed.

Are changes coming for TikTok users in the U.S.?

Under the new structure, U.S. user data is stored locally on Oracle’s secure cloud servers, and TikTok’s security and compliance measures are audited by third-party experts. The platform’s algorithm, originally developed by ByteDance, will now be retrained on U.S. user data under Oracle’s oversight, potentially leading to subtle changes in content recommendations over time, which some people have expressed mixed feelings about. 

Questions surrounding the future of TikTok’s algorithm have sparked renewed debate among experts, particularly around the potential for bias within the app’s content feed. Some investors tied to the deal, including Oracle Executive Chairman and Chief Technology Officer Larry Ellison, are known allies of President Donald Trump, prompting concerns from analysts about whether political influence from the Republicans could control what appears or gets hidden from the short-form video app. 

“Given that the companies and individuals that are a part of the deal have very close ties to the Trump administration, it begs the question of whether we’re trading one form of undue state influence for another,” said Sarah Bauerle-Danzman, a professor specializing in national security and business investment at Indiana University, in an interview with ABC News.

“If the president is unhappy with things that go viral on the platform, they might get a lot of pressure to suppress that kind of content,” Bauerle-Danzman added.

TikTok, however, has pushed back against those concerns, maintaining that the ownership shift represents a significant step toward protecting the platform’s integrity. The company said the new structure allows TikTok to “safeguard the U.S. content ecosystem and have decision-making authority for trust and safety policies and content moderation,” according to ABC News.

Alongside the ownership changes, TikTok has also updated its privacy policy, which may include broader data collection practices such as more precise location tracking and expanded use of user data for personalized advertising.

The TikTok USDS Joint Venture also governs trust and safety, content moderation, and software security. It ensures continuous accountability through transparency reporting and third-party certifications, the company said in a press release. The joint venture is managed by a seven-member, majority-American board of directors, including TikTok CEO Shou Chew, Silver Lake Co-CEO Egon Durban, Oracle executive Kenneth Glueck, and other industry leaders with expertise in technology, cybersecurity, and governance.

For most users, TikTok will look and function the same. There’s no need to download a new app, and accounts, followers, and content remain unaffected. The transition is seamless, with no mandatory migration or data deletion. However, users should be aware of possible long-term changes in algorithm behavior, content recommendations, privacy practices, and monetization rules for creators.

The true effects of the TikTok USDS Joint Venture LLC shift will become clearer over time. But for now, users and creators should keep an eye on content algorithms, policy updates, monetization tools, and ongoing regulatory developments.

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Understanding TikTok’s New Ownership: What Does It Mean For U.S. Users?
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