January 25, 2026 — Millions of TikTok users in the United States experienced outages and glitches early Sunday as the popular video platform undergoes a historic transition to U.S. ownership. Reports from users in Connecticut and across the country showed frozen videos, loading errors, and temporary downtime beginning in the early morning hours.
Why TikTok Went Down
TikTok’s brief disruption comes at a pivotal moment: the company recently finalized a sale of its U.S. operations to a group of mostly American and allied investors to comply with a U.S. law that could have banned the app entirely.
The new company, called TikTok USDS Joint Venture LLC, is now majority-owned by non-Chinese investors, with data security, content moderation, and algorithm oversight shifting to the newly formed entity.
Who Owns TikTok in the United States Now?
Under the new structure:
Oracle, Silver Lake, and MGX each hold a 15% stake as managing investors. Other U.S. and global investors hold additional shares, bringing total non-Chinese ownership above 80%. ByteDance, TikTok’s Chinese parent company, retains a 19.9% minority stake — the maximum allowed under current U.S. law.
This structure satisfies a 2024 law that requires foreign-controlled platforms to divest or face a nationwide ban.
What Caused the Outage?
Tech analysts point to a combination of factors:
Technical Migration — Transferring data infrastructure and security systems to the new U.S. entity may have caused instability. Policy Updates — New terms of service and compliance checks rolled out to users could disrupt normal app functions. User Confusion — Some users reported issues with agreeing to updated privacy terms before they could fully use the app.
TikTok confirmed that users can continue logging in with the same accounts, but the full experience — including recommendation feeds and creator features — may evolve as the transition continues.
What This Means for TikTok Users
Creators:
Top content creators depend on TikTok for income and audience growth. While the app remains live, changes to algorithms and monetization terms could affect visibility and earnings.
General Users:
For everyday users, the app’s core functionality remains intact, but interface and policy changes may appear over the coming weeks.
Privacy and Security:
Under the new U.S. ownership, user data is being stored on Oracle’s secure U.S. cloud servers, with enhanced safeguards and regular audits to comply with national security guidelines.
Political and Legal Background
TikTok has been at the center of U.S.–China tech tensions for years. In 2024, Congress passed a law demanding divestiture of foreign-controlled platforms like TikTok, citing national security fears. The app briefly shut down in the U.S. in January 2025 before being restored under executive orders, but pressure mounted for a permanent solution.
The finalized deal was approved by both U.S. and Chinese authorities and signed off in late January 2026, narrowly avoiding a U.S. ban.
Looking Ahead
TikTok’s transformation into a majority-U.S.-owned platform marks a major moment in tech geopolitics. While the app remains one of the most popular social networks in America, watchers will be closely following how algorithms, data security, creator monetization, and user experience evolve under U.S. oversight.
Whether this change leads to a more secure, reliable TikTok or a platform with a fundamentally different vibe, users and creators alike are bracing for change.
