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TikTok Signs Agreements With US Investors. What’s Next for Creators and Users?

The moves are being made so that the popular app can continue operating in the US.

Three major new investors, including two American groups, signed agreements with popular video app TikTok on Thursday, according to The New York Times. The app’s Chinese parent company, ByteDance, maintains a minority stake. The ramifications could be huge for the millions of creators and fans of the immensely popular short-video app. But at the moment, any future changes to the app are mostly unknown.

The part-American, part-global investor group includes tech giant Oracle, a California-based private equity fund called Silver Lake and the United Arab Emirates investment firm MGX. The joint venture will be governed by a new seven-member board of directors, with a majority of American members.


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The changes come as an attempt to comply with a federal law that would ban the app if it did not reduce its Chinese ownership. ByteDance was facing a Jan. 23 deadline. President Donald Trump had repeatedly delayed the enforcement of the ban.

For years, the US government has raised concerns about potential Chinese government access to data through TikTok’s parent company. In 2023, TikTok CEO Shou Chew said, «TikTok has never shared, or received a request to share US user data with the Chinese government. Nor would TikTok honor such a request if one were ever made.»

In a memo obtained by media outlets this week, Chew told employees, «The US joint venture will be responsible for US data protection, algorithm security, content moderation, and software assurance. It will also have the exclusive right and authority to provide assurances that content, software, and data for American users is secure.»

It’s estimated that TikTok has more than 170 million American users, as well as millions of creators, some of whom earn their living by making videos on the app.

Roll for the algorithm?

One of those creators is Jacob Pauwels, of the immensely popular «Roll for Sandwich» videos, where he rolls dice, Dungeons & Dragons-style, to determine what kind of sandwich he’s going to make. Millions of people regularly watch his videos on TikTok, YouTube, Instagram and other platforms.

Pauwels said it was «stressful’ not knowing if TikTok — his largest platform — was going to be banned in the US. Now that the app’s fate seems a bit more secure, he said he still has concerns about American majority ownership of the brand.

«I do worry about possible issues with censorship that could arise,» Pauwels told CNET. «So many of the digital privacy concerns that have been cited as reasoning for the TikTok ban and forced sale of the platform can absolutely be applied to American companies like Meta, so I feel like there are definitely some other motivations driving those who have wanted to shut down the platform or shift its ownership.»

When it seemed a possibility that TikTok could be banned in the US, Pauwels made the decision to share his videos on other platforms.

«I have made a conscious effort to diversify my earnings across multiple platforms to ensure I am not overly reliant on the income stream from any particular one,» he said. «As ownership of TikTok changes, there is no guarantee that things will continue being the same status quo, but even if something like TikTok’s Creator Program were to go away, while it would be a substantial hit to my income and livelihood, it would no longer be career-ending.»

US consumers will have to adjust

Kelsey Chickering, principal analyst at global research and advisory firm Forrester, said TikTok’s algorithm definitely will change for US consumers. 

«One of the most important questions in this deal has always been whether the algorithm would come with the sale, and the answer is ‘yes and no,'» Chickering said in a statement. «This US joint venture will have to retrain the recommendation algorithm on US user data — meaning the experience will feel different, and users will very likely notice.»

Simply stated, an algorithm is a method for predicting the type of content that consumers will enjoy. If you watch a number of TikTok recipe videos, the app will likely recommend more of those to you. TikTok and other content platforms use machine learning to analyze the content you like and then display more of that, aiming to keep you engaged on the app for as long as possible.

With US investors becoming involved in the US version of TikTok, Chickering said the data that the app analyzes will be different.

«While the algorithm may be the same in the US version, the data inputs are not,» Chickering told CNET. «If the US joint venture trains this US algorithm on US-only data, not global data, the content mix will naturally shift. Users might find their feeds feel less culturally edgy and far less globally minded.

«The algorithm is the heartbeat of TikTok’s addictive experience, and the jury’s out on whether a US-only TikTok will replicate the magic of the original experience,» she said. «If it doesn’t, creators and consumers may flock to YouTube Shorts and Instagram Reels.»

Technologies

Apple Launches Creator Studio Package as $13 a Month Subscription

Mac users can still buy the apps individually, but subscribers get access to Final Cut Pro and other Studio tools.

Apple is bundling its pro filmmaking and audio tools including Final Cut Pro with its productivity apps Keynote, Pages and Numbers into a subscription software suite called Apple Creator Studio.

The package, which includes apps for Mac, iPad and iPhone, includes Logic Pro, Pixelmator Pro, Motion, Compressor, MainStage and the whiteboard app Freeform. Creator Studio will be available starting Jan. 28 at a cost of $13 per month or $129 per year, or $3 per month or $30 per year for students and educators. Mac users will still have the option to purchase software like Final Cut Pro for a one-time free. The current price for Final Cut Pro in the Mac App Store is $300.

While apps such as Keynote and Pages are already free on Apple platforms, it appears that new versions of those apps will receive access to beta features that will roll out first to Creator Studio subscribers. The announcement by Apple alludes to «new AI features and premium content» in some of the apps it otherwise makes available to use for free.

What the Creator Studio bundle comes with

The star of the show in Creator Studio is Final Cut Pro, the video editing software that will now include Transcript Search on both Mac and iPad. There is also a new Beat Detection feature Apple says uses an AI model to analyze a music track and display a beat grid, making it easier to cut video to music rhythms. The software also will include a new Montage Maker on iPad for quick social video creation.

Motion, the 2D and 3D graphics tool, and Compressor also integrate with Final Cut Pro. Apple touted Motion’s Magnetic Mask feature for isolating objects or people without the need for a green screen.

Logic Pro has new features for musicians, including a Synth Player addition to AI Session Players. Chord ID, a new AI feature, can create chord progressions from audio or MIDI recordings. A new Sound Library will have hundreds of royalty-free clips, samples and loops.

A revamped MainStage app gives subscribers access to instrument, voice-professing and guitar rig tools. Pixelmator Pro arrives with new tools and filters, and there will be an iPad version in addition to the Mac tool.

Freeform in the Creator Studio package will add premium content, including curated photos, graphics and illustrations. It will also get new AI features that include image creation.

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Technologies

Reddit Outage Resolved: Here’s What Happened

Did you have trouble reading your favorite subreddits today? You weren’t alone.

If you had trouble accessing the news and discussion forum Reddit on Tuesday, you weren’t the only one. However, as of 10:15 a.m. PT, the site appears to be back up and running normally. Reddit’s status monitoring page, RedditStatus.com, notes that «all systems (are) operational» after the brief outage.

But earlier, at 9:30 a.m. PT, RedditStatus.com said the company was «investigating elevated errors across reddit.com and native apps.» RedditStatus.com reported degraded site performance for both desktop web use and native mobile apps.

Earlier on Tuesday, the site-monitoring service DownDetector also reported issues at Reddit, providing additional details. At one point on Tuesday, DownDetector received over 100,000 reports that the site was having problems. At 10:25 am PT, the report numbers fell to under 600. (Disclosure: Downdetector is owned by the same parent company as CNET, Ziff Davis.)


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«Reddit is currently experiencing a significant internal outage causing widespread service disruptions,» the site said earlier Tuesday. «The impact is categorized as Very High, primarily affecting mobile app access (55%) and website connectivity (39%). While reports are heavily concentrated in major hubs like New York City and Chicago, the lack of ISP correlation suggests a broad, nationwide issue stemming from Reddit’s internal servers rather than external network providers.»

A representative for Reddit did not immediately respond to a request for comment. Another social media site, X, formerly Twitter, also showed problems on Tuesday, according to DownDetector. Those problems seemed to spike around 6:30 a.m. PT and improve after.

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Technologies

This 3-in-1 Charger Is a Must-Have for Travelers, and It Just Hit a Record-Low of $95

Snag it for $45 off and charge your iPhone, AirPods and Apple Watch at the same time.

If you’re a frequent traveler, then you know that outlets are a precious commodity in places like airports and coffee shops. So why waste one on a single device when you can charge up to three at once? Right now, you can grab this seriously sleek Ugreen Magflow three-in-one foldable charger for just $95 at Amazon. That’s a $45 discount and the all-time lowest price we’ve seen. Just don’t wait too long, as this deal could expire at any time.

At just 7.4 ounces, this compact charging station is designed to be taken on the go. But despite its size, it still supports 25-watt MagSafe charging for iPhones, as well as 5-watt wireless charging for AirPods and Apple Watches. The charging stand also tilts up to double as a stand, and it’s equipped with 16 magnets to keep your phone aligned and securely in place. Plus, it’s got built-in protections against overheating, overcharging, short-circuiting and more to prevent damage to your devices.

Why this deal matters

This folding Ugreen charger is great for juicing up your devices on the go, and it’s never been more affordable. Plus, Ugreen makes some of the best MagSafe chargers on the market right now, so don’t miss your chance to grab one at a record-low price.

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