What Are U.S. TikTok Investors Buying? New Data Offers a Window.

An investor group is being organized to buy the U.S. operations of the popular video-sharing platform TikTok. (ROBYN BECK/AFP via Getty ImagesAFP via Getty Images)

Key Points

About This Summary

• TikTok had 66 million U.S. daily active users in the third quarter, with 94% of its global daily active users located outside the U.S.
• U.S. daily active TikTok users increased from 19 million in 2019 to 68 million in 2023, but user growth has since stalled.
• TikTok generated $1.3 billion in U.S. in-app revenue in 2025, with the U.S. accounting for 30% of its global in-app sales.

Details are trickling in on a deal to keep the viral video app, TikTok, active in the U.S.

The American joint venture investors who will own a majority stake in the U.S. version of TikTok are taking on a midsize social media platform with a booming e-commerce operation, according to new data from market research firm, Sensor Tower.

While 94% of TikTok’s daily active users in the third quarter were outside the U.S., the platform had 66 million U.S. daily active users in the period, according to Sensor Tower.

Among social media platforms, that size is only bested by Google’s YouTube, and Meta’s Facebook and Instagram. U.S. daily active TikTok users rose from 19 million in the third quarter of 2019 to 68 million in 2023, but since then user growth has stalled.

A 2024 law required that China-based owner ByteDance divest the U.S. TikTok operations by this past January or face bans in U.S. app stores. President Donald Trump has extended that deadline several times, most recently last week. White House press secretary Karoline Leavitt said on Saturday that she was “100% confident” that a deal has been reached on the split, but the exact final details have yet to emerge.

Along with YouTube, TikTok leads in U.S. engagement, with daily average users spending 80 minutes a day on each platform, well above third place, Instagram, at 53 minutes.

TikTok accounted for around 5% of all third-quarter U.S. digital ad spending, a solid share relative to its size. But where TikTok really excels the most is in commerce on the platform.

TikTok was the largest 2025 generator of U.S. in-app revenue at $1.3 billion, more than HBO Max and Peacock combined. In the third quarter, the U.S. accounted for 30% of TikTok’s global in-app sales, so that would be a big loss for ByteDance should a deal go through.

The investors in a new joint venture would be getting an important U.S. social media asset and a growing commerce platform, but a deal comes with compromises. Though concentrated among a young demographic, U.S. user growth has stalled and there is no certainty new owners can change that. Cutting off content from 94% of the app’s global users may make TikTok less engaging.

Write to Adam Levine at adam.levine@barrons.com