How TikTok’s New U.S. Deal Could Change How Marketers Use the Platform

Now that TikTok is a U.S. based company, we could potentially see a difference in how marketers and creators plan for the platform this year.

According to the BBC, a new U.S. entity, TikTok USDS Joint Venture LLC, now owns and operates a separate entity controlling TikTok in the U.S., governed by a board of seven directors backed primarily by U.S. investors. TikTok CEO Shou Zi Chew is among them, and ByteDance retains a 19.9% stake. The recommendation algorithm that powers the “For You” feed has been licensed to Oracle, which already oversaw U.S. user data under “Project Texas,” but will now secure more of the app and retrain/update the recommendation system based on U.S. user data.

Terms & conditions changed and here’s what that means for marketers

TikTok reportedly updated its U.S. terms of service as the deal closed. The contract is now between U.S. users and TikTok’s new U.S. entity. A few updates stand out:

• A new rule stating children under 13 can’t use TikTok outside of its “Under 13 Experience.”

• A clarification highlighting that the U.S. entity does not endorse platform content or reflect its views.

• A disclosure stating users continuing after January 22nd must acknowledge AI features can produce inaccurate, misleading, inappropriate, or unlawful content, and that they assume that risk.

For marketers, this doesn’t change how you post tomorrow, but it does signal a platform trying to tighten governance, limit liability, and reassure stakeholders that operations can continue in the U.S. with fewer security concerns.

Beacon Bridge Resource: Curious how this fits into your broader digital strategy? Check out our guide on Omnichannel Marketing: Is Your Strategy Seamless or Siloed?

 

Does this change the TikTok marketing landscape?

It’s possible. When a platform feels uncertain, brands get cautious. They pause budgets, strategies stay short-term, and agencies hesitate to build long-term programs.

However, a new U.S. structure has the potential to increase advertiser confidence for some, especially for brands that were on the fence, because “business as normal” is easier to justify when stability looks more likely.

But the biggest conversation isn’t about board seats or terms and conditions. It’s about the feed.

 

The Concern: Will the Algorithm Get Worse for U.S. Users?

This is a real worry. Not because people think TikTok will suddenly become unrecognizable, but because small changes to what’s being recommended can create big ripple effects in reach, discovery, and content trends.

The algorithm will be retrained on U.S. user data, and experts cited in the BBC discussion note that algorithm tweaks can affect what people see and what they create, which could lead to a different look and feel over time. Others suggest any changes would likely be subtle and gradual, not dramatic, but changes are likely.

A few of these risks are:

• Weaker personalization, which could reduce how quickly the feed learns niche interests.

• Short-term tuning issues after updates, like repetitive content, random recommendations, or inconsistent reach.

• Shifts in what gets amplified, which can influence creator behavior and trend cycles.

At the same time, there’s a strong counterpoint that says TikTok has every incentive to protect its recommendation engine because it’s the platform’s “crown jewel.” As one expert put it, the goal is not reinvention, but continuity, and too much disruption could hurt both users and advertisers.

 

Practical takeaway for marketers

Regardless of changes, the focus should be to build resilient systems like strong hooks to maximize watch time, prioritize value, embrace authenticity, and to optimize for watch time.

 

Frequently Asked Questions 

Who owns the new TikTok U.S. entity?

The new entity, TikTok USDS Joint Venture LLC, is majority-owned by a consortium of U.S. investors including Oracle and Silver Lake. ByteDance, the original parent company, retains a minority stake of 19.9%.

How does “Project Texas” affect the new algorithm?

Under the new deal, Oracle—which led the “Project Texas” data security initiative—now has increased oversight. The algorithm is being retrained specifically on U.S. user data within Oracle’s secure cloud environment to ensure data privacy and independence.

Should my brand change its TikTok strategy immediately?

Not necessarily. While the ownership has changed, the user behavior remains largely the same for now. The best approach is to continue prioritizing high-quality, authentic content while monitoring your reach and engagement metrics for any subtle shifts in the algorithm’s behavior.

How can I build a social media presence that survives algorithm changes?

Platforms and algorithms will always shift, but your core communication strategy shouldn’t have to. If you want to build a stronger foundation online that works no matter what the algorithm is doing, check out our guide on the PIECE Online Networking Strategy. It focuses on timeless principles of human connection that transcend specific platforms.