TikTok US Owners Face Outages After ByteDance Handover

ByteDance, the Chinese company behind TikTok, handed over control of the app's US operations to a new American-led group on January 22, 2026. The move came just before a deadline that could have banned the app from US app stores. Lawmakers pushed for this for years over fears that China could reach American user data. Now Oracle, Silver Lake, and MGX run most of the show, with ByteDance holding a small stake. But users hit snags almost at once, with feeds failing and videos stuck.

Background

Talks about TikTok's future in the US started back in 2020. Then-President Donald Trump issued orders to ban the app, saying it posed risks to national security. He worried ByteDance might share data with the Chinese government. Those orders got paused, but pressure kept building.

In 2021 and 2022, the Biden administration looked into TikTok's data handling. The company started Project Texas, a plan to store US user info on American servers run by Oracle. That was meant to ease fears, but it did not stop calls for more action.

Lawmakers from both parties teamed up in April 2024. They passed the Protecting Americans from Foreign Adversary Controlled Applications Act. It told ByteDance to sell its US TikTok business or lose access to US app stores by early 2026. The Supreme Court backed the law last year.

ByteDance fought the ban in court, but time ran out. Deals got worked out in late 2025. The US and Chinese governments gave the green light. Former President Trump said last year the setup met the law's terms. TikTok has over 170 million users in the US, many who post short videos daily.

Key Details

The new setup created TikTok USDS Joint Venture LLC. American and global investors own 80.1 percent. ByteDance keeps 19.9 percent, the biggest single share but no control.

Oracle, a big US cloud company, Silver Lake, a private equity firm, and MGX from Abu Dhabi each hold 15 percent as top investors. They lead on data, algorithms, and content rules.

All US user data now sits in Oracle data centers in the US. Backups are in Virginia. Old data on ByteDance servers got deleted. New rules limit who can touch the info. Separate code bases keep US work apart from China.

Adam Presser runs the new group. He worked at TikTok before. The board has seven members, including CEO Shou Chew. They aim to keep things running smooth.

ByteDance still handles US e-commerce and ads, like TikTok Shop. The joint venture gets a cut of revenue for tech and data work. US creators can reach global audiences. Product changes might differ for US users going forward.

Early Problems Hit Users

Trouble started right after the switch. Over the weekend, thousands of US users could not load feeds or the For You page. Downdetector saw over 500,000 reports in 24 hours, peaking Sunday. Videos would not upload for many. The app serves 170 million people, so these glitches spread fast. Users and watchers wait to see if fixes come quick.

"The joint venture was set up to protect national security through data protections, algorithm security, content moderation, and software checks for US users." – TikTok USDS press release

What This Means

The deal lets TikTok stay in the US without a full sale. Data stays local, which lawmakers wanted. Algorithms get retrained on US info. Content moderation falls under US control. That could mean changes to what videos show up.

E-commerce might shift. More US sellers and payment systems could join TikTok Shop. Ads may use American tech partners. Creators could see new payout rules.

Some say it does not go far enough. ByteDance's role in business ops raises flags. Critics want checks on any data flow. Congress plans hearings. Senator Edward Markey called for looks at the deal, algorithm checks, and oversight.

Oracle leads tech fixes. They plan audits, monitoring, and separation from ByteDance. The group must build its own admin, partnerships, and rules.

Users face short-term bugs as systems adjust. Long-term, the app may feel more American-run. Features could match US tastes better. Global links stay for reach.

Businesses that use TikTok for sales and ads watch close. Stability matters for their plans. Investors eye returns from the venture.

The setup might guide other apps in tense spots between countries. For now, TikTok works to prove it can run independent and safe. Outages test that early. Teams push to fix services and build trust with users, makers, and officials.