TikTok’s US Spin-Off: U.S. Control, But Profits Flow to China

ByteDance is set to receive around 50% of profits from TikTok’s U.S. operations, despite American investors holding the majority of shares. The Washington-Beijing deal values the spin-off at $14 billion and establishes a joint venture to oversee TikTok in the United States. 

According to the Financial Times

The new structure brings in American firms, including Oracle and investment groups, which will formally manage TikTok’s U.S. business. However, ByteDance, despite being capped at a 19.9% equity stake, will still gain a large share of profits through licensing agreements and control of algorithms. This has raised fresh concerns in Washington over national security.

Critics argue the agreement is largely cosmetic, allowing ByteDance to retain influence over TikTok while easing immediate political tensions. Some experts say the U.S. traded long-term security for a short-term fix. The deal still requires final approval, but it has already sparked heated debate across the country.