TikTok Gets US Owners: What Can Businesses Expect?

In January this year, President Trump signed an executive order to keep TikTok live in the US under US ownership. The extension was due to the Supreme Court’s ruling that TikTok needed to divest its US operations or face a ban across the country, to protect concerns over national security.

Since the start of the year, the Trump administration has delayed the ban a further four times, with no impact to the day-to-day use of the app for users or businesses:

1. First extension signed January 20
2. Second extension signed April 4
3. Third extension signed June 19
4. Fourth extension signed September 16

The latest extension was granted this month, meaning the ban won’t be enforced while the US and China fully finalize the recently announced deal.

As a reminder, the executive order will only apply to the US TikTok app. Here’s what we know so far:

• US investors will have majority ownership of TikTok in the US
• Americans will hold six of the seven board seats for the app’s US operations
• TikTok’s Chinese parent company ByteDance will own less than 20% of the US app
• TikTok’s algorithm, code, and content moderation will be managed by the new owners
• Investors include Oracle, Rupert Murdoch, and Michael Dell, but more information will be revealed in the next few weeks
• Oracle will monitor TikTok’s security and protect all US user data

According to the statement from the White House, the “new joint venture will be run by a new board of directors and subject to rules that appropriately protect Americans’ data and our national security.”

With the uncertainty over TikTok’s US ban and the back-and-forth of deal negotiations, what does the future look like for the app? It’s too soon to tell.

Based on the White House’s fact sheet:

“President Trump found a solution for the 170 million Americans who use TikTok, ensuring users will be able to safely enjoy the same global TikTok experience and view content from around the world with confidence that their data is secure in the United States.”

So, for businesses using TikTok, it’s likely that little will change when using the app, beyond how your data is handled. However, a few questions arise when we look at the new executive order and deal.

Could Trump manipulate the algorithm to be all-MAGA content? While we don’t know if the US owners will make any changes to the algorithm yet, Trump has said “every group, every philosophy, every policy will be treated very fairly.”

The White House fact sheet also estimates that $178 billion will be generated through TikTok business in the US over the next four years, but what happens post-Trump’s administration?

With the deal announcement, Trump acknowledged the impact a US TikTok ban could have on small business owners, especially for those selling on TikTok Shop.

Businesses rely on the social media app for ads, marketing, and ecommerce, so the sign of a deal means SMBs and larger enterprises won’t lose out on potential sales. Plus, TikTok provides a great platform to build a community online and boost brand awareness.

It’s too early to really know how the US-owned version of TikTok will operate, but it’s important to continue with your social media strategy and avoid making rash changes until more information is released.