Hollywood celebrated a reprieve Thursday night as TikTok secured a deal to continue operating in the U.S., a lifeline for the app’s millions of users and the creators who depend on it for income.
A New Chapter for TikTok in the U.S.
The agreement, involving Oracle Corp. and a group of U.S. investors, comes after years of uncertainty surrounding the app’s future.
- TikTok reached an agreement to continue U.S. operations through a new joint venture.
- The deal involves Oracle Corp. and a consortium of U.S. investors.
- Creators and businesses alike expressed relief, citing the app’s importance to their livelihoods.
- The agreement resolves national security concerns raised in 2020.
Just hours before TikTok’s first American awards show at the historic Hollywood Palladium on Sunset Boulevard, creators learned the app would avoid a potential ban. The agreement, confirmed by TikTok in an email to employees, is expected to be finalized next month. Keith Lee, named “Creator of the Year,” embodies the app’s impact, transitioning from professional MMA fighter and food delivery driver to a social media personality with 17.3 million followers.
“TikTok is the best way to reach people and I know so many people who rely on it to support their families,” Lee said. “For me, it’s my career now so I can’t imagine it not being around.”
The relief was palpable among the hundreds of creators gathered for the inaugural awards show, many based in Southern California. The app serves as a crucial income source for these individuals, while businesses leverage the platform and its influencers for promotional opportunities.
Concerns about TikTok’s future arose after the Supreme Court upheld a ban due to national security concerns initially raised by President Trump in 2020. Trump later allowed TikTok, which maintains offices in Culver City, to continue operating in the U.S. and formalized the new joint venture with an executive order in September.
Comedy creator Adam W., with 22.6 million followers, described the news as “game changing.” His videos, often parodies of pop culture—like a “The Bachelor” skit with lookalike models or a matcha latte date with Will Smith—have garnered a massive audience.
“That’s so good to hear,” Adam W. said. “So many people are able to make careers off of TikTok. There’s so many people out there who go to TikTok to get away from their reality and it means a lot to them, so I think it’s really valuable for us to have.”
TikTok’s global head of creators, Kim Farrell, emphasized the app’s transformative power, stating, “You represent a truly global community of over 1 billion people on TikTok. This year, you showed the world just how much impact creators have.”
The awards show, a two-hour event recognizing creators across various categories, featured performances and skits referencing popular TikTok trends, including Jools Lebron’s call for “demure” behavior and Rei Ami of K-Pop Demon Hunters launching a Labubu cannon into the crowd. Despite the celebratory atmosphere, the event experienced technical difficulties, with screens intended to display visuals remaining dark throughout the night.
“TikTok definitely changed my life,” Lee said. “I always planned my life around food, so I’m blessed to just turn the camera on and do the same thing.”
Analyst Max Willens of EMarketer believes the new ownership structure will help TikTok regain lost market share. “This past year, because a lot of advertisers weren’t really sure whether TikTok was going to stay or go, it did kind of slow the momentum that we had seen on that platform,” Willens said. “We think that moving forward that is going to wind up just being a blip.”
