TikTok US Deal Closes: What the New Ownership Means for Advertisers

After years of speculation, threats, and legal battles, the TikTok situation in the United States has finally resolved.

On January 22, 2026, the deal closed. TikTok US now operates under a new joint venture structure with American investors including Oracle, Silver Lake, and UAE-based MGX. The ban that was threatened is off the table, but TikTok as advertisers knew it may be changing significantly.

For marketers who have built substantial TikTok advertising operations, this is a moment that requires careful assessment rather than business as usual.

The New Ownership Structure

The deal divests US TikTok to a joint venture of primarily American investors:

• Oracle, Silver Lake, and MGX (UAE) will own approximately 45%
• Existing ByteDance investors retain a stake
• ByteDance itself maintains partial ownership

Oracle leads as the designated security partner, responsible for data audits, replicating and retraining a new algorithm under US jurisdiction.

The newly formed "TikTok USDS Joint Venture LLC" handles US-specific operations including content moderation, data governance, and algorithmic oversight. This is not a cosmetic restructuring. This is meaningful operational separation from ByteDance's global operations.

Privacy Policy Changes Raise Concerns

Following the acquisition, TikTok's updated Terms and Conditions have generated significant user backlash. Key changes include:

GPS-level geolocation tracking: A new provision enables precise location tracking beyond what was previously collected.

Expanded data sharing: Updated language permits the platform to share user data with third parties for "customized ads and other sponsored content," including advertising off the TikTok app.

These changes have been met with widespread disapproval. Thousands of users are threatening to leave the platform, and the hashtag campaigns protesting the new policies are trending.

For advertisers, the privacy changes cut both ways. More data could mean better targeting capabilities. But if users leave or reduce usage in response, the audience shrinks regardless of targeting precision.

What This Means for Advertisers

Forrester's recommendation is direct: "Advertisers and creators should be wary about TikTok's effectiveness in 2026."

Several factors create uncertainty:

Algorithm changes are likely. A replicated algorithm under new oversight and potentially new optimization priorities may not perform the same way. Content that went viral under the old system may behave differently.

User behavior is in flux. Between the deal anxiety, new policies, and user protests, TikTok usage patterns may shift. Some users will leave. Others will change how they engage.

Platform strategy may evolve. New ownership often means new strategic priorities. How TikTok balances user experience versus monetization, and how aggressively they pursue advertising revenue, could change.

Regulatory scrutiny continues. The deal resolves the immediate ban threat, but ongoing oversight means the platform operates under conditions that could change with political winds.

"The deal is moving forward, but the US version of TikTok may not look or function the same in 2026. Marketers should avoid overcommitting budget or strategy to a single app undergoing structural change."

Diversification Is Now Essential

The TikTok situation illustrates a broader lesson: platform dependency creates business risk.

Forrester recommends diversifying to YouTube, Instagram, and podcasting. This is sound advice regardless of how TikTok evolves.

Marketers who built their entire short-form video strategy around TikTok now face months of uncertainty about how the platform will perform. Those who maintained presence across multiple platforms have options.

This is not a prediction that TikTok will fail. The platform has 150+ million US users and remains hugely influential in culture and commerce. But advertisers should:

Maintain presence on multiple short-form platforms. YouTube Shorts and Instagram Reels have grown significantly and offer TikTok-style content without TikTok's specific risks.

Avoid overcommitting annual budgets. Plan in shorter windows until the situation stabilizes. Three-month commitments are more prudent than twelve-month commitments right now.

Monitor performance closely. Watch for changes in CPMs, engagement rates, and conversion metrics that might signal algorithmic or audience shifts.

Build owned audiences. Email lists, SMS subscribers, and first-party data are not subject to platform risk. Every TikTok follower you can convert to owned audience reduces your exposure.

The Creator Economy Implications

TikTok is not just an ad platform. It is where creators build audiences that translate into business value across the entire internet. The creator economy implications of the deal are significant.

Creators are watching user reaction carefully. If TikTok's audience shrinks or engagement drops, creator economics change. Top creators may prioritize other platforms, which affects advertiser opportunities around creator partnerships.

The new ownership also creates uncertainty about creator monetization programs, brand partnership rules, and content policies. Creators making business decisions about platform investment face the same uncertainty as advertisers.

What Happens Next

The immediate crisis is resolved. TikTok is not being banned. But "not banned" is different from "stable and predictable."

Over the coming months, watch for:

• Changes to ad products and capabilities
• Algorithm behavior differences that affect content distribution
• User retention data showing whether protests translate to departures
• Creator migration patterns as they assess the new landscape
• Regulatory actions or requirements from US authorities

The TikTok story is not over. It has entered a new chapter with different uncertainties than before.

The Bottom Line

The TikTok US deal provides clarity on one question: the platform will continue operating in the United States. But it raises new questions about how the platform will evolve under new ownership, new policies, and new oversight.

Smart advertisers will neither abandon TikTok nor double down on it. The prudent approach is maintaining presence while diversifying risk, monitoring performance closely, and being prepared to adjust as the situation develops.

We are tracking TikTok developments closely as part of our platform diversification strategies for clients. Reach out if you need help navigating this transition.

FAQ

Is TikTok definitely staying in the US?

Yes. The deal closed January 22, 2026, establishing a US-based joint venture that allows TikTok to continue operating. The immediate ban threat is resolved.

Who owns TikTok US now?

A joint venture called "TikTok USDS Joint Venture LLC" with Oracle, Silver Lake, MGX (UAE), ByteDance, and existing ByteDance investors. American investors control approximately 45%.

Should I stop advertising on TikTok?

Not necessarily, but you should diversify. TikTok remains a massive platform with engaged users. However, the uncertainties around algorithm changes, user retention, and platform evolution make over-reliance risky.

Will TikTok's algorithm change?

Possibly. The algorithm is being replicated and operated under US jurisdiction with Oracle oversight. Whether this changes how content is recommended and how ads perform remains to be seen.

Are users actually leaving TikTok?

There is significant social media backlash against the new privacy policies, but whether complaints translate to actual user departures is unclear. Monitor platform engagement metrics in your campaigns for signals.