ByteDance is not giving up much. Chinese company stays tied in TikTok USA deal. ByteDance is going to keep control of lots of things even after President Donald Trump signed the executive order for divesting. This order, made last week, told ByteDance it must sell TikTok’s US businesses or get banned by the end of the year. But reports from the US and China say things are not simple. ByteDance still owns US business stuff, like ads, shopping, and branding deals.
Many thought TikTok would leave China behind, but the deal is not like that. ByteDance gets plenty of profit. Source people say ByteDance gets close to half the money TikTok makes in the USA. That’s for using the TikTok algorithm and sharing the tech. Even new American owners mostly just hold the keys—ByteDance keeps the real engine.
Two Parts—One TikTok
The deal makes TikTok split in two pieces for the USA:
- Joint Venture: New business controls user data, the app’s secrets, and the stuff that keeps TikTok popping in the USA. American investors like Oracle, Silver Lake, and MGX, plus Abu Dhabi groups, get majority shares. ByteDance is a minority owner but is still there every step.
- Business Division: ByteDance holds onto all the money-making jobs—ads, e-commerce, and partnerships. If TikTok sells music or sneakers in California, ByteDance gets a cut, say people in the know.
Lawmakers Watch Closely
Congress is not sure TikTok is really away from ByteDance’s grip. Many lawmakers say the deal is too soft. One top lawmaker, John Moolenaar, says he will watch for any ties ByteDance keeps with US TikTok, especially in the tricky parts like the app’s recommendation system. The law wants zero connection after the split.
But sources say the deal can change again. Even now, the US and China argue the points. Chinese media gave details first, but some stories disappeared after.
What’s Next for TikTok Users?
America wants TikTok to stay because it has 170 million US users. Trump and others say TikTok helped him talk with younger voters. The White House even made its own TikTok account just last month. But the new owners have not decided on everything yet—price, final rules, and money split still keep changing.
Vice President JD Vance says the new TikTok US will be worth about $14 billion. This price is much less than old guesses from tech experts, who thought TikTok US could be sold for $40 billion. Some analysts think American buyers got a real bargain.
ByteDance: Still Making Money
Most talk says ByteDance will pocket both licensing fees and profit shares. For example:
- Licensing fee: For TikTok’s smart algorithm, about 20% of related revenue.
- Equity stake: ByteDance keeps about 20% profit from the thing it still part-owns.
Altogether, ByteDance gets half or more of TikTok US profits even after new owners control most stuff.
US investors get 80%, but the Chinese company keeps getting paid.
Final Thoughts: TikTok’s Future Is Not Simple
Short form: ByteDance is not leaving TikTok America. US buyers get the shiny keys, but ByteDance has hands in the pocket. The profits keep flowing to Beijing, while the app stays alive for users here.
Lawmakers and critics yell for more, but the deal might stand. In three months, TikTok probably won’t look much different. ByteDance sits behind the curtain, making sure money and influence stick around.
(Source: usnews, timesofindia, nypost)
