Timed completely with the primary US-based TikTok Awards, TikTok signed an settlement to divest US TikTok. This deal, reportedly valued at round $14 billion, will divest US TikTok to a three way partnership of primarily American traders, together with Oracle, Silver Lake, and MGX (UAE), which can personal about 45%. The remaining stake will stick with current traders of ByteDance and ByteDance itself. This compromise will give the US extra management whereas permitting ByteDance to stay concerned. Final yr, Forrester predicted that TikTok wouldn’t be banned or divest in 2025, and it appears like we simply made it. The settlement is about to shut on Jan. 22, 2026. However this isn’t a “carried out deal” but — it nonetheless requires approval from US regulators and the Chinese language authorities.
TikTok has survived extra political whiplash than some other platform — dodging government orders, authorized battles, and ban deadlines. Its endurance proves simply how embedded it’s in US tradition. In our February 2025 Shopper Pulse Survey, lower than half (43%) of US TikTok customers informed us it could be a constructive final result if Larry Ellison (Oracle’s chairman) purchased TikTok, however 67% additionally mentioned that they plan to proceed to make use of the app no matter who buys it. I feel it’s secure to say that this assumes the app stays the identical.
The Algorithm Expertise Will Be Totally different
This new US three way partnership shall be answerable for securing the algorithm, defending US information, moderating content material, and overseeing software program assurance. Probably the most essential questions on this deal has at all times been whether or not the algorithm would include the sale, and the reply is “sure and no.” This US three way partnership must retrain the advice algorithm on US consumer information — which means the expertise will really feel completely different, and customers will very doubtless discover.
The algorithm is the heartbeat of TikTok’s addictive expertise, and the jury’s out on whether or not a US-only TikTok will replicate the magic of the unique. If it doesn’t, creators and customers might flock to YouTube Shorts and Instagram Reels.
Manufacturers And Creators Ought to Be Skeptical
It’s doable that this new TikTok shall be even higher than the unique, however that’s not a assure. At this level, there are extra questions than solutions. Right here’s what you need to be asking:
- How will TikTok handle adverts for world vs. US TikTok?
- Will the adverts on US TikTok be roughly efficient than earlier than?
- How will content material attain change? And what does that imply for the way creators construction model offers?
- How will globally minded creators and types handle their content material throughout the apps?
- Will these new homeowners tip the algorithm in their very own favor?
- How will they handle content material moderation?
Advertisers and creators needs to be cautious about TikTok’s effectiveness in 2026. Begin diversifying your bets (in the event you haven’t already) to different channels like YouTube, Instagram, and even podcasting.
Forrester purchasers: Let’s chat extra about your TikTok and creator advertising and marketing technique through a Forrester steerage session.
