TikTok’s Chinese parent, ByteDance, will retain approximately 50% of the US operation’s profits even after selling a majority ownership stake to American investors, sources familiar with the matter told Bloomberg News on September 26, 2025. The arrangement includes licensing fees for the algorithm and an equity stake, potentially exceeding 50% of the overall ownership.
Vice President JD Vance disclosed that the new US entity is valued at $14 billion, lower than analysts’ estimates of $35-40 billion. ByteDance will license its core algorithm to the US company, generating substantial revenue. The terms, still confidential, ensure ByteDance benefits after the sale.
President Donald Trump delayed the enforcement of the 2024 ban law until December 16, 2025, to facilitate the deal. He spoke with Chinese President Xi Jinping last week, announcing an agreement. Trump credits TikTok for his 2024 re-election, citing his 15 million personal followers and the launch of a White House account last month.
Read: Trump Signs Executive Order for TikTok US Sale to Meet 2024 Ban Law
Congress required ByteDance to divest TikTok’s US assets or face a ban by January 2025, citing data security risks. The app, with 170 million U.S. users, faced scrutiny over its alleged ties to Chinese influence. Trump’s extensions allowed time for American investors and Chinese approval.
The profit-sharing model strikes a balance between US security concerns and ByteDance’s interests, potentially setting a precedent for tech divestitures. With TikTok projected to generate $18 billion in 2024 revenue (Statista), ByteDance’s stake ensures long-term gains while averting a ban that could affect millions.
