‘Reassurance and stability’: What the TikTok US deal means for brands

Up in the air for the past nine months, a framework has finally been proposed that would secure the future of TikTok US by replacing Chinese-owner ByteDance with new American owners.

It is reported tech giant Oracle will house US users’ data and oversee the algorithm, licensing a copy of ByteDance’s recommendation mechanic as part of the deal. Media mogul Rupert Murdoch and CEO of computer company Dell, Michael Dell, have also been named as potential investors.

The new developments under Oracle and the consortium of investors could lead to a separate version of TikTok in the US, meaning a US app and a ‘rest of the world’ app.

Last April, ByteDance was ordered to sell TikTok to a US buyer amid national security concerns about data being shared with the Chinese state. A short ban was implemented on 19 January, although a day later President Trump used an executive order to stop the action. He would delay the ban a further four times over the course of the year and earlier this week pushed the deadline back again to December.

Founder and chief innovation officer at Billion Dollar Boy, Thomas Walters, says the developments are good as they bring “a bit of certainty that TikTok isn’t going anywhere”, meaning brands, advertisers, agencies and creators still see investing in the app as “worthwhile”.

A new US-owned company will remove that ever-present sense of imminent danger, bringing reassurance and stability to both TikTok employees and advertisers.

Scott Guthrie, Influencer Marketing Trade Body

He explains creators are “very resilient” to platform shifts, but will have to navigate what content curation will look like, particularly if a chunk of the audience is lost from the US to a separate app. China, for example, has its own version of TikTok called Douyin.

“If there are separate apps, the consumer experience on the international one will be very different. That’s not necessarily a good or bad thing, but consumers, creatives, brands will certainly all experience significant change if they are completely separated, just as they are in China,” says Walters.

Speaking to Marketing Week in January, the Billion Dollar Boy founder predicted there would like be a hit to organic performance for brands and creators with large followings in the US market following the first ban.

“[This time around] changes will be more pronounced from an organic creator perspective in brand marketing teams that are more territory specific,” says Walters.

He explains that for brands and creators, it’s business with a “bit more” short-term complexity, but “not business lost”.

“With change always comes opportunity and creative thinking that can increase in this space,” Walters adds.

‘Confident in its longevity’: What next for TikTok as potential US ban returns?

Director general of the Influencer Marketing Trade Body, Scott Guthrie, tells Marketing Week a deal would be a welcome change.

“TikTok has operated under the Sword of Damocles for too long. A new US-owned company will remove that ever-present sense of imminent danger, bringing reassurance and stability to both TikTok employees and advertisers in the world’s largest ad market,” says Guthrie.

However, what happens next will be “critical to TikTok America’s success”.

“The new company will have to replace competencies lost when key employees buckled under uncertainty and left the company. They’ll also need to retrain the leased algorithm from ByteDance adequately,” he adds.

Forrester’s principal analyst, Kelsey Chickering, describes TikTok as “like a cat clinging onto its nineth life”. She explains the US-only app will feel different, as it will need to be “trained” on US data, which will mean “the recommendation engine will feel different to users”.

“Given the potential players involved in this deal, if the algorithmic scales tip too far toward one political direction, it could send many current TikTok users to other platforms – just like we saw happen with Twitter (now X) following its acquisition,” Chickering claims.

If there are separate apps, the consumer experience on the international one will be very different.

Thomas Walters, Billion Dollar Boy

The Forrester analyst explains that because a deal isn’t likely to be finalised until 2026, for advertisers there is still “uncertainty”. Chickering’s message for brands is to “closely monitor” their TikTok performance and get ready shift into comparable entertainment channels if the ‘new’ TikTok doesn’t live up to its predecessor.

Analyst Alex DeGroote is optimistic about the deal, claiming the consortium of investors will “enhance the standing of TikTok in the eyes of brand advertisers, in terms of platform and data integrity”.

He believes TikTok US having its own algorithm “may renew trust with US-only advertisers”, while ByteDance retaining a material ownership share may “reassure advertisers and possibly creators”.

That said, Walters notes advertisers may have to use two separate buying platforms given the split from ByteDance, which could lead to “slightly less efficiency” if there isn’t a “dual system scenario”.

While he regards TikTok as a “beloved platform” due to “the uniqueness” of the algorithm and the community, Walters acknowledges “anything could happen” in the months ahead.