ByteDance to Keep About Half of TikTok US Profits Under Trump-Backed Sale Terms

ByteDance, the Beijing-based parent of TikTok, is poised to retain about half of the profits from TikTok's U.S. business under a sale structure brokered by President Donald Trump that would transfer majority ownership to a U.S.-based investor group, people familiar with the talks said. The talks involving the U.S. side of the deal are aimed at resolving security concerns while preserving value for the platform that dominates the U.S. short-video market, the people said. Bloomberg News reported that ByteDance would pocket both a licensing fee tied to TikTok's recommendation algorithm and a share of profits tied to its remaining stake in the U.S. venture. The arrangement would still leave ByteDance with a substantial economic stake in the U.S. operation, even as control passes to U.S. investors.

Under the plan, ByteDance would collect a licensing fee equal to roughly 20% of revenue generated through the algorithm and would also retain about 20% of profits on the remaining revenue. Taken together, the structure could leave ByteDance with about 50% of TikTok U.S. earnings once the sale closes, depending on how profits are distributed and taxed. The U.S.-backed buying group is expected to include Oracle Corp., Silver Lake Management and Abu Dhabi-based MGX, alongside existing investors. The 80% combined ownership figure referenced in discussions reflects the share of TikTok U.S. assets that would be owned collectively by ByteDance and the U.S. buyers, with ByteDance retaining a significant economic stake through the licensing and profit-sharing arrangements.

Analysts have noted that the price tag floated by the Trump administration—about $14 billion for the U.S. unit—appears well below some estimates of TikTok’s value, which have ranged from $35 billion to $40 billion, according to Bloomberg. Ashwin Binwani, founder of Alpha Binwani Capital, told Bloomberg the proposal could be the most undervalued tech acquisition of the decade, arguing the figure reflects only a fraction of TikTok’s true worth. The price gap underscores how negotiators are balancing potential security concerns with market value and future earnings potential.

Terms remain unresolved, and Chinese officials have not publicly confirmed any agreement. The Biden administration previously signed legislation requiring ByteDance to divest TikTok U.S. or face a nationwide ban, though Trump has repeatedly extended deadlines while brokering terms with buyers. The Chinese embassy in Washington told Bloomberg News that the U.S. should provide an open, fair and non-discriminatory environment for Chinese investors as talks continue. The Post reported that the parties have negotiated extensively, but the exact balance of licensing revenue, profit shares and equity stake could shift before an agreement is reached. Comment requests to ByteDance, TikTok and the White House were not immediately answered.

If finalized, the deal would demonstrate the complexity of separating platform ownership from access to its core recommendation algorithm, a central driver of TikTok’s revenue. It would also illustrate how technology platforms operate under geopolitical pressure, where governance, security concerns and valuation intersect in real time. The arrangement could set a precedent for how other tech groups with sizable user bases in politically sensitive markets structure divestitures or partnerships that preserve value while satisfying national-security implications. The discussion around TikTok’s U.S. unit has kept investors, policymakers and industry observers watching closely as talks evolve toward a potential closing.

The posture of the U.S. side—favoring a majority-American-owned structure—remains a cornerstone of the negotiations, even as ByteDance seeks to retain a meaningful economic stake in the profits generated by its most valuable asset in the United States. The discussions illustrate the ongoing tension between market value, algorithm-driven monetization, and national-security considerations that have defined U.S. policy toward Chinese tech in recent years. The agreement, once announced, would likely include updates to governance, data-access protocols, and ongoing oversight to address regulatory concerns while enabling the platform to operate with continued growth in the U.S. market. The Post has sought comment from ByteDance, TikTok and the White House, but no immediate statements were available at publication.

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