This bigger-than-expected role ensures ByteDance remains deeply involved in TikTok’s new entity, raising questions about the company’s true level of influence.
Earlier, US President Donald Trump signed an executive order approving the sale of TikTok’s US business to a group of investors, including Oracle and Silver Lake. The move was aimed at addressing national security concerns.
However, the ownership details under discussion may spark debate in Congress. Critics argue that Trump’s approval might not meet the requirements of the 2024 law, which demanded that ByteDance fully divest from its US operations or face a complete ban.
Lawmakers are now expected to scrutinize whether this arrangement qualifies as a true divestiture or simply allows ByteDance to maintain hidden influence over TikTok in the US.
The revelation that ByteDance will keep ownership of TikTok’s US operations could reignite political and security debates. While the deal satisfies surface-level requirements, many believe it may not be a full separation as promised. The coming weeks will likely bring more scrutiny from US lawmakers, keeping TikTok’s future in uncertainty.
On Friday after a Reuters report, the chair of the House Select Committee on China John Moolenaar, a Republican, said he will conduct full oversight over the deal, adding that the deal should "preclude operational ties between the new entity and ByteDance."
"The law also set firm guardrails that prohibit cooperation between ByteDance and any prospective TikTok successor on the all-important recommendation algorithm," Moolenaar said.
The structure is still under discussion and could yet change, these sources said.
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The White House did not reply to a request for comment. ByteDance did not reply to a request for comment after Asia business hours. TikTok in the U.S. did not immediately respond to a request for comment.
Sources said the new U.S. TikTok would be divided into two companies. The joint venture that was announced by Trump will serve as the backend operations to the U.S. company and handle U.S. user data and algorithm. ByteDance is expected to be the single largest minority shareholder in the joint venture, sources said.
A separate division that will continue to be wholly owned by ByteDance will control the revenue-generating business operations such as e-commerce and advertising, these sources said.
The new U.S. company will be valued at around $14 billion, Vice President JD Vance said.
Reports in Chinese media published on Friday described a two-part structure in which ByteDance will continue to own the part of TikTok U.S. that will be responsible for e-commerce, branding operations and interconnection with international operations, while a separate new joint venture will handle the user data and algorithm. The reports by Chinese media outlets LatePost and Caixin were taken down later on Friday.
Saving TikTok in the U.S. is important to Trump. He talks about TikTok often and how it has helped him reach young voters. He has credited TikTok, which has 170 million U.S. users, with helping him win reelection last year, and has 15 million followers on his personal TikTok account. The White House also launched an official TikTok account last month.
