TikTok forms U.S. entity, easing mortgage marketing concerns

"Jessica Reed, vice president of marketing, brand, recruiting and partnerships at AnnieMac Home Mortgage, said 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 establish personal brands long before a borrower enters the application process. With greater confidence in the platform's future, brands can invest more intentionally in consistent storytelling and early-stage borrower education."

"Trump celebrated the deal on 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 U.S. users will be retrained and operated by the U.S. entity, with ByteDance licensing the technology while retaining a 19.9% stake. Oracle, Silver Lake and MGX will each hold 15% ownership."

"The deal follows years of uncertainty after Congress passed, and former President Joe Biden signed, a law requiring TikTok to divest from its Chinese parent, ByteDance, or face a ban by January 2025. The app briefly went dark on Jan. 19, 2025, before President Donald Trump signed an executive order on his first day back in office that granted the app a 75-day extension while a deal was negotiated."

U.S. users will continue using the same app, although the deal's impact on content, users and algorithms is unclear. Mortgage companies that use the platform for Gen Z and millennial outreach were concerned about a sale or ban. Jessica Reed said the deal brings clarity and stability, allowing lenders to educate consumers, build trust and establish personal brands before applications. Adam Presser will serve as CEO of the new U.S. venture, overseen by a seven-member, majority-American board that includes TikTok CEO Shou Chew. A law required divestment or a ban by January 2025; the app briefly went dark on Jan. 19, 2025, then received a 75-day extension. The agreement transfers control of the U.S. recommendation algorithm to the U.S. entity while ByteDance retains a 19.9% stake; Oracle, Silver Lake and MGX each hold 15%.

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