TikTok Lives On: The U.S. Deal and What Advertisers Need to Know

Situation at a Glance

• On January 22nd, TikTok USDS Joint Venture LLC, was established, allowing the platform to continue operating in the U.S. under a new, compliant ownership and governance structure. The Joint Venture is majority American-owned, with ByteDance retaining a 19.9% minority stake, materially reducing near-term regulatory and shutdown risk.
• Silver Lake, Oracle, and MGX serve as managing investors, providing U.S.-based operational oversight and security governance.
• U.S. user data and the recommendation algorithm are secured and operated in Oracle’s U.S. cloud, addressing longstanding national security concerns.
• The Joint Venture’s safeguards extend beyond TikTok to include CapCut and Lemon8, two ByteDance-owned apps widely used by U.S. creators and brands.
• Advertising, commerce, and creator operations continue uninterrupted, with global interoperability preserved for U.S. brands and creators.

Implications for Advertising

• Near-Term Stability: The establishment of the Joint Venture significantly reduces the risk of a U.S. TikTok shutdown, allowing advertisers to plan and scale with greater confidence.
• Operational Continuity: No disruption is expected to campaign execution, audience reach, or creative formats.
• Ongoing Oversight: While key concerns have been addressed, TikTok will continue operating under increased regulatory scrutiny, and advertisers should stay informed as governance and transparency evolve.

Code3 Recommendations

TikTok isn’t going anywhere, and the new U.S. Joint Venture adds meaningful near-term stability for advertisers. Our recommendation remains the same: keep testing, learning, and leaning into the platform. This isn’t a moment to pull back, it’s a moment to stay agile, as brands must do in an ever-evolving paid social landscape. Brands that balance TikTok with a diversified paid social mix will be best positioned to drive performance today while protecting against potential longer-term volatility. While additional stakeholders could introduce future shifts to governance or platform priorities, official communications confirm no immediate changes. This update doesn’t change the playbook: it reinforces it.