The news: TikTok’s US business has formally transitioned into a majority-American structure with the creation of TikTok USDS Joint Venture LLC, closing a multiyear legal standoff that threatened a nationwide ban while introducing a new governance model.

• The joint venture is owned by a US-led investor group including Oracle, Silver Lake, and Emirati investment firm MGX, who will own 15% each; just over 30% by affiliates of existing ByteDance investors; and 19.9% by ByteDance itself.
• Leadership reflects that shift. Adam Presser will serve as CEO and Will Farrell as chief security officer, with a seven-person board dominated by US-based investors alongside TikTok CEO Shou Chew.
• The US entity will oversee data protection, content moderation, and security, while Oracle will host and secure US user data domestically.
• The joint venture will license its algorithm from ByteDance, per The New York Times, and will retrain it on US user data, a structure the company says preserves the global content experience for users even as internal oversight increases.
• The deal formally removes the immediate risk from the sale-or-ban law upheld by the Supreme Court, per Fortune, though final regulatory approvals in both the US and China are pending.

Why it matters: While the agreement stabilizes TikTok’s legal footing, it leaves open questions about influence.

• Critics argue ongoing algorithm licensing and ByteDance’s retained stake may fall short of fully severing operational ties.
• Governance risks remain. Some analysts warn that reduced concern over foreign ownership could give way to worries about domestic political pressure shaping moderation, partnerships, or policy decisions.
• Valuation expectations also diverge sharply. US officials have floated a roughly $14 billion value for a standalone US TikTok, far below ByteDance’s estimated $480 billion private-market valuation, highlighting tension around control and economics.

Implications for marketers: The joint venture gives advertisers something TikTok has lacked for years: Near-term certainty. With the ban threat lifted, brands can plan campaigns without quarter-to-quarter disruption fears. Still, governance complexity adds a new layer of risk assessment. Brands will need to monitor how algorithm oversight, moderation decisions, and political scrutiny evolve under US control.

TikTok’s next phase will focus on extracting value from an existing base through higher ad loads, improved targeting, and commerce integrations. Rising ad revenues per user suggests stronger pricing power, which may lift CPMs, but user growth itself is slowing.