HOW IMPORTANT IT IS THAT TIKTOKER INFLUENCERS KNOW WHAT'S IN MIGHT HAPPEN THE SELLING OF TIKTOK.

What’s happening: The TikTok divestment / sale push

1. The law forcing a sale (or ban)

• In 2024, the U.S. passed a law (the Protecting Americans from Foreign Adversary Controlled Applications Act) that requires apps whose parent companies are controlled by a “foreign adversary” to divest or be banned.

• ByteDance, the Chinese company that owns TikTok, is thus under pressure to sell off or restructure TikTok’s U.S. operations or risk being banned in the U.S. altogether.

• The appeals courts have affirmed that Congress has the authority to mandate such a divestment.

2. Negotiations, extensions, and uncertainty

• Deadlines to divest or face a ban have been extended multiple times.

• President Trump has intervened, delaying enforcement and negotiating terms.

• There is talk of a “qualified divestiture” — whereby TikTok’s U.S. operations become owned (or majority-owned) by U.S. investors under certain legal safeguards.

• Recently, an executive order was signed that gives more time (120 days) to finalize a deal, and early structure has been approved in principle.

• The proposed deal includes U.S. investors like Oracle, Michael Dell, and Lachlan Murdoch.

• The Chinese side still needs to agree to the terms, especially regarding sensitive components like the algorithm.

• In fact, Chinese officials have stated they will not sell TikTok’s algorithm (i.e. the “secret sauce” behind its recommendation engine) as part of any deal.

3. Technical and structural changes being planned

• TikTok is building a new U.S.-specific version of its app (internally called “M2”) to separate its U.S. operations technically from the rest of ByteDance.

• The current app is slated to continue working until March 2026 (though that may shift), after which users might have to migrate to the new version.

• One of the hardest challenges is disentangling or re-licensing the algorithm and data systems so that they comply with U.S. national security constraints yet still deliver the “magic” of TikTok’s feed ranking.

Why this matters for influencers & creators

The fate of TikTok in the U.S. is not just a regulatory drama—it has real-world implications for creators, brands, and anyone building an audience there. Here are the key risks, opportunities, and strategies to watch:

Risks / Threats

1. Disruption or downtime

   • The app could go offline in the U.S. if the deal fails or if regulatory approvals don’t come through.

   • Even with a sale, some features might be temporarily disrupted during migration to the new app (user migration, glitches, lost features, etc.).

2. Algorithm changes / loss of “virality magic”

   • The algorithm — the “For You” recommendation engine — is a huge reason why TikTok can make relatively unknown creators explode overnight.

   • If the algorithm gets reworked (or loses access to certain data), the engagement dynamics could shift dramatically.

   • Some insiders worry that the “magic” of precise personalization will degrade if the algorithm is re-implemented under U.S. constraints.

3. Loss of feature or monetization changes

   • TikTok’s monetization systems (creator funds, live tipping, e-commerce integrations) might be altered.

   • TikTok Shop and integrated commerce features—already a big part of influence-to-sales pathways—could be restricted or reconfigured.

   • Partnerships with brands might need renegotiation if reach metrics or algorithms change.

4. Audience fragmentation or migration

   • Some users might not migrate to the new version or could drift to alternative platforms (Instagram Reels, YouTube Shorts, etc.).

   • If creators are reliant mostly on TikTok, they might see falling engagement or reach until the platform stabilizes.

5. Increased competition / costs

   • As brands and creators hedge their bets, the cost of ads or influencer deals could shift upward elsewhere (Instagram, YouTube).

   • There’s risk in over-relying on one platform as your only audience base.

Opportunities / Silver linings

1. First-mover advantage / adaptation

   • Creators who migrate early and help their communities transition could retain more of their audience.

   • If the new U.S. TikTok places emphasis on curation or new features, influencers who tailor content well could benefit.

2. Algorithm transparency / reset chance

   • The structural shake-up might lead to more openness about recommendation logic or new discovery mechanics.

   • There’s a possibility to benefit from a “reset” — creators who crafted content to algorithm norms might need to adapt, but new styles or niches could emerge.

3. Diversification push

   • This is a strong signal to build audiences across platforms (Instagram, YouTube, Snapchat, etc.) rather than depending on one.

   • Cross-platform presence becomes insurance for content creators.

4. More favorable terms or new partnership opportunities

   • The new ownership might be more creator-friendly (e.g. better revenue shares, more tools, local support).

   • Deals with brands might evolve, e.g. deeper integrations, direct commerce links, etc.

What creators should be doing now

To be prepared, here are some strategic moves to consider:

• Don’t put all your eggs in one basketBuild your audience across multiple platforms. Drive followers to your email list, newsletter, or personal website. Diversify where you post content (Instagram, YouTube, etc.).

• Communicate with your fansLet your audience know how you’ll handle transitions (e.g. “if the app changes, here’s where to find me”) so you retain connection even if things shift.

• Monitor changes closelyWatch for announcements about the new app (“M2”), user migration deadlines, or feature deprecations. Stay agile and be prepared to pivot content strategy.

• Experiment & be flexibleTry content formats that can work cross-platform (e.g. repurposable videos, long-form content). Don’t double down only on what works right now under the existing algorithm.

• Monetization diversificationLook beyond platform-based monetization—sponsorships, affiliate marketing, courses, merch, Patreon, etc.

• Understand the legal/contract sideIf you hold contracts with brands based on reach metrics, keep an eye on how reach/engagement is measured and any changes there.

• Watch data / analytics changesIn a new app and restructuring, the data you get access to (insights, metrics) may shift. Be ready to adapt how you measure performance.