TikTok held its first American awards show Thursday night at the Hollywood Palladium, coinciding with news of a deal to ensure the app’s continued operation in the United States. The agreement, confirmed by TikTok in an email to employees, establishes a joint venture with a group of U.S. investors including Oracle Corp., and is expected to be finalized next month.
A Shift in Ownership
The announcement comes after years of uncertainty surrounding TikTok’s future in the U.S., stemming from national security concerns raised in 2020. The Supreme Court had previously upheld a potential ban on the platform. However, an executive order signed in September allowed TikTok to continue operating under the framework of the new joint venture.
The awards show celebrated creators who have contributed to TikTok’s growth and influence, particularly among younger Americans. Keith Lee, a creator with 17.3 million followers, was recognized as “Creator of the Year.” Lee, who previously worked as an MMA fighter and food delivery driver, noted that TikTok has become his career.
Creators and the Economy
Many creators, a significant number of whom are based in Southern California, depend on TikTok as a primary source of income. Businesses also utilize the platform and its influencers for promotional purposes. Comedy creator Adam W., with 22.6 million followers, described the news as “game changing,” emphasizing the app’s value as both an entertainment outlet and a livelihood for many.
Despite the celebratory atmosphere, the awards show experienced technical difficulties, with screens intended for visuals remaining dark throughout the event. The two-hour show included skits referencing popular TikTok trends.
Frequently Asked Questions
What prompted the deal to allow TikTok to continue operating in the U.S.?
National security concerns raised in 2020 led to a potential ban, but subsequent executive orders and negotiations resulted in a joint venture agreement with U.S. investors, including Oracle Corp.
How do creators benefit from TikTok’s continued operation?
Creators, like Keith Lee and Adam W., rely on the platform as a source of income and a means of reaching a large audience. TikTok provides a career path for many and a source of entertainment for millions.
What impact did the uncertainty surrounding TikTok have on the platform?
According to Max Willens, an analyst at EMarketer, uncertainty about TikTok’s future led to a slowdown in its momentum as advertisers hesitated to invest.
As TikTok enters this new phase with revised ownership, will the platform be able to fully regain its previous growth trajectory and continue to shape digital culture?
