Selling TikTok in the US, ByteDance still retains the advantage

ByteDance, TikTok's parent company, is expected to retain significant ownership of TikTok's US operations, although it will cede control of data, content and algorithms to a new joint venture due to security concerns, three sources familiar with the matter told Reuters .

ByteDance's larger-than-expected role in the new entity suggests the Chinese tech giant is likely to continue its deep involvement in one of the most popular apps in the US.

On September 26, US President Donald Trump signed an executive order on a plan to sell TikTok's US operations to a group of investors, including Oracle and Silver Lake. This is considered a condition for the application to meet national security requirements under the 2024 law, forcing ByteDance to divest from TikTok US or face the risk of being banned.

However, details regarding the ownership structure are still under negotiation, and some US lawmakers expressed skepticism about whether the deal would be approved by the White House.

Republican Rep. John Moolenaar, chairman of the House China Select Committee, said he would closely monitor the deal, noting that the new law places strict restrictions on ByteDance partnering with other apps similar to TikTok to share its recommendation algorithm, a core element of its growth.

According to sources, TikTok US could be split into two companies. The new joint venture, as announced by President Trump, will be responsible for operating the US infrastructure, managing user data and algorithms, with ByteDance likely to become the largest minority shareholder. Another division, still fully controlled by ByteDance, will be in charge of revenue-generating businesses such as e-commerce and advertising.

US Vice President JD Vance estimates the new US company could be valued at around $14 billion .

Chinese media on September 26 also reported a similar two-part structure, in which ByteDance would retain control of TikTok’s US division, which handles e-commerce, branding, and international operations, while a separate joint venture would handle data and algorithms. However, the reports from LatePost and Caixin were later debunked.

Source: https://znews.vn/bytedance-van-tham-gia-quan-ly-tiktok-my-post1588690.html