TikTok Bounces Back After Ownership Change, But Rivals Gain Traction

In a dramatic turn of events that had the tech world on edge, TikTok has largely recovered from a brief but notable dip in daily active users following its high-profile ownership transition in the United States. The video-sharing juggernaut, which briefly saw its U.S. user base shrink to between 86 and 88 million daily active users, has roared back to reclaim its throne with over 90 million daily users—proof that even a storm of controversy and technical glitches couldn’t keep the platform’s loyal fanbase away for long.

The shake-up began in late January when a consortium of American investors, including high-profile names like former Treasury Secretary Steven Mnuchin, finalized a deal to take control of TikTok’s U.S. operations. This move came amid mounting regulatory pressure and fears over data privacy, setting the stage for a period of uncertainty that briefly opened the door for competitors.

The Great TikTok Exodus—and Return

As news of the ownership change spread, TikTok users grew increasingly anxious. A newly updated privacy policy, which included permission to track users’ precise GPS locations, sparked immediate backlash. Many feared this was a sign of things to come under new management, especially as rumors swirled about potential content moderation changes and increased data collection.

Adding fuel to the fire, TikTok’s terms of service contained language about collecting users’ “immigration status”—a clause that, while technically required under California’s privacy laws, nonetheless alarmed many. The timing couldn’t have been worse: just as users were scrutinizing the app’s policies, a multi-day data center outage struck, causing widespread glitches, broken searches, and malfunctioning features. Many users interpreted these technical issues as evidence of censorship, prompting a wave of defections to rival platforms.

The Rise of TikTok’s Challengers

While TikTok stumbled, two upstart video apps seized the moment. UpScrolled, a newcomer with a sleek interface and creator-friendly policies, saw its daily active users peak at an impressive 138,500 on January 28. Although that number has since dropped to 68,000, it marked a significant milestone for the platform, which had previously flown under the radar.

Skylight Social, another TikTok alternative, experienced even more explosive growth. The app hit 81,200 daily active users at its peak and has since stabilized at around 56,300. More impressively, Skylight reported a total of 380,000 user sign-ups in late January alone, signaling strong interest in platforms that promise a fresh start away from TikTok’s controversies.

Both apps benefited from TikTok’s misfortune, but their gains were modest compared to the giant they sought to challenge. Still, their rapid growth underscores a broader trend: users are increasingly open to exploring alternatives, especially when their favorite platform faces turbulence.

TikTok’s Resilience Shines Through

Despite the brief exodus, TikTok’s ability to rebound speaks volumes about its entrenched position in the social media landscape. The platform’s daily active users have returned to levels above 90 million, a testament to its addictive algorithm, diverse content, and the loyalty of its creator community.

However, the recovery hasn’t erased all concerns. Similarweb’s data reveals a gradual decline in TikTok’s usage over the latter part of 2025, when daily active users peaked at 100 million between July and October. While the platform remains dominant, the slight erosion in its user base suggests that competitors may continue to chip away at its market share—especially if TikTok fails to address user concerns about privacy and content moderation.

The Road Ahead: Can TikTok Keep Its Crown?

As TikTok stabilizes under its new American ownership, the question on everyone’s mind is whether it can maintain its momentum. The platform’s recent troubles have exposed vulnerabilities that rivals are eager to exploit. For UpScrolled and Skylight Social, the challenge now is to convert their brief surge in interest into sustained growth.

Meanwhile, TikTok must navigate a delicate balancing act: reassuring users about their privacy and data security while also demonstrating that its new leadership won’t compromise the platform’s unique culture. The company’s swift resolution of the data center outage and its transparent communication about the issue are positive steps, but rebuilding trust will take time.

One thing is clear: the social media landscape is more dynamic than ever, and even giants like TikTok are not immune to disruption. As users become more discerning about where they spend their time online, platforms that prioritize transparency, user experience, and creator empowerment will be best positioned to thrive.

For now, TikTok remains the undisputed king of short-form video—but its challengers are circling, ready to pounce on any future missteps. The battle for users’ attention is far from over, and the coming months will reveal whether TikTok’s rebound is the start of a new chapter or just a temporary reprieve in an increasingly competitive arena.

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