US users will continue to use the same app, although it is not clear whether the deal will affect the app’s content, users or their respective algorithms.
Mortgage companies were among the many business sectors concerned about a potential sale or ban of the app, as many use the platform for social media outreach efforts — especially those targeting Gen Z and millennial consumers.
Jessica Reed, vice president of marketing, brand, recruiting and partnerships at AnnieMac Mortgage at homesaid the deal is positive news for lenders and individual mortgage professionals.
“This deal brings clarity and stability. TikTok allows lenders to educate consumers, build trust and build personal brands long before a borrower enters the application process. With greater confidence in the platform’s future, brands can more consciously invest in consistent storytelling and early borrower education.”
The Associated Press reported that Adam Presser, a former TikTok executive, will serve as CEO of the new company, which will be overseen by a seven-member, majority-American board, including TikTok CEO Shou Chew.
The deal follows years of uncertainty Congress was passed, and former President Joe Biden signed, a law requiring TikTok to divest from its Chinese parent company. ByteDansotherwise, a ban will be imposed in January 2025.
The app briefly went offline on January 19, 2025, before President Donald Trump signed an executive order on his first day back in office granting the app a 75-day extension while a deal was negotiated.
Trump continued to celebrate the deal Truth social and thanked Chinese President Xi Jinping “for working with us and ultimately approving the deal.”
Under the agreement, TikTok’s content recommendation algorithm for US users will be retrained and operated by the US entity, with ByteDance licensing the technology while retaining a 19.9% stake.
Oracle, Silver Lake and MGX will each own 15% of the shares. The Associated Press noted that other investors include the investment company of Michael Dell, the founder of Dell Technologies.
