TikTok has surpassed Instagram and Facebook in monthly active users in the United States as Oracle prepares to oversee the platform’s algorithm under a pending acquisition deal, according to new data and regulatory developments.

The short-form video app reached 183 million monthly active users on iOS and Android devices in August, representing a 16% year-over-year increase, according to data from digital market intelligence company Similarweb, provided exclusively to Sherwood News. This figure exceeds the combined user base of Pinterest and Snapchat in the U.S.

The platform’s daily active users grew 19% to 102 million, approaching Facebook’s 107 million daily users. While Facebook maintains a slight lead in daily usage and holds an advantage on both desktop and mobile web, these audiences remain smaller than those engaged through apps.

TikTok last officially disclosed having 170 million monthly U.S. users in March 2024.

Acquisition Details and Algorithm Oversight

Under the pending agreement, TikTok’s U.S. operations will transfer to a new joint venture with majority American ownership and governance. ByteDance will provide a licensed copy of TikTok’s algorithm for use in the U.S. market, while retaining a stake of less than 20% in the operation.

Oracle, alongside private equity firm Silver Lake and reportedly Fox Corp., will participate in the ownership group. Oracle will expand its existing partnership with ByteDance, which currently involves storing TikTok’s U.S. user data domestically.

The content recommendation engine, central to both TikTok’s popularity and security concerns, represents a critical component of the deal. The U.S. ownership group will receive the algorithm code from ByteDance, review it, and retrain it on American user data.

Oracle is reported to take responsibility for monitoring how content is delivered to U.S. users, a measure aimed at addressing concerns that ByteDance could otherwise influence the algorithm at the direction of the Chinese government.

Regulatory Process

The deal awaits formal regulatory approvals, although White House officials express confidence in its completion. President Trump plans to sign an executive order declaring the arrangement constitutes a qualified divestiture as required by last year’s legislation, while reports indicate an extension of the enforcement pause by 120 days to finalize paperwork and approvals.

Some lawmakers, including Representative John Moolenaar, have expressed skepticism about whether the arrangement adequately addresses security concerns related to potential Chinese influence.

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