TikTok’s U.S. joint venture appears to have weathered a rocky transition with little long-term effect on its user base, contrary to initial fears of widespread departures due to service outages and censorship concerns. According to the latest data from Sensor Tower, while there was a noticeable spike in user deletions following the announcement of the TikTok USDS Joint Venture on January 23, the average number of daily active users remains at approximately 95% of its pre-announcement levels.
This joint venture was created in response to an executive order from former President Donald Trump, which demanded the divestiture of TikTok from its Chinese parent company, ByteDance. As part of the deal, ByteDance retains a 19.9% stake in TikTok’s U.S. operations, while Oracle, Silver Lake, and Abu Dhabi’s MGX each hold 15%. The agreement has drawn scrutiny, with critics, including Senator Bernie Sanders, voicing concerns about potential cronyism linked to Oracle’s co-founder Larry Ellison.
Initially, users reacted negatively to the news of new ownership, especially after Oracle announced plans to modify TikTok’s content recommendation algorithm using U.S. user data. Speculation surged that this could lead to the platform censoring content or promoting views aligned with specific political agendas, particularly after claims emerged of suppressed conversations around controversial topics, like Immigration and Customs Enforcement activities. Although CNBC confirmed that messages containing the name ‘Epstein’ received error notifications, it could not validate claims of broader censorship.
Despite the chaos surrounding the launch, engagement metrics largely remained stable. Users returned to spending an average of 80 minutes per day on TikTok after a brief dip, suggesting that the disruptions were not enough to drive users away en masse. Senior insights analyst Abraham Yousef noted that a spike in app uninstalls seemed to coincide with efforts to troubleshoot and address concerns, with reinstallations also surging dramatically.
While new social media platforms, such as UpScrolled, saw a temporary increase in user downloads, this interest quickly waned. Data indicated that UpScrolled’s downloads surged by 770% in the week after TikTok’s announcement but plummeted by about 80% the following week. Meanwhile, TikTok itself saw approximately 870,000 new downloads during the same period.
Analysts are cautioning against interpreting anecdotal claims of a mass exodus as definitive evidence of significant changes in user behavior. Kelsey Chickering, a principal analyst at Forrester, remarked that most users still find the app fundamentally unchanged and engaging. The overarching sentiment suggests that while the joint venture may prompt subtle shifts in algorithmic recommendations, users have not markedly altered their usage patterns.
Moreover, there are new terms of service that raise questions about data collection and user privacy, including how TikTok may now gather precise location information and data on interaction with AI tools. Jim Johnston, a partner at Davis+Gilbert LLP, highlighted the potential for the algorithm to influence content visibility, something that users will be closely monitoring.
Despite initial dissatisfaction, it seems that TikTok has largely retained its American audience, consistent with the historical trend in social media where user loyalty often prevails even amidst ownership changes. As Chickering aptly noted, “If the product works, users tend to stick around regardless of who owns it.” As of now, user apprehensions appear to have calmed, at least temporarily, as TikTok continues to navigate its new chapter under American ownership.
Original Source: https://www.cnbc.com/2026/02/16/tiktok-us-joint-venture-user-data-no-mass-exodus-oracle-mgx-silver-lake-larry-ellison-trump.html
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Publish Date: 2026-02-16 09:33:00
