(Reuters) -ByteDance will play a bigger than expected role in the new TikTok entity that is set to be sold to U.S. and global investors to address U.S. national security concerns, three sources familiar with the matter told Reuters, in a new structure that appears to lay out the continued and significant involvement of the China-based global tech giant.
ByteDance will be maintaining ownership of TikTok’s U.S. business operations and will cede control of the app’s data, content and algorithm to the newly formed joint venture, the sources said.
The new details about the ownership structure may raise questions in Congress and among critics about whether the deal approved by Trump represents a qualified divestiture of all of TikTok’s U.S. assets as required under a 2024 law, which required ByteDance to divest its U.S. operations or face a ban.
The structure is still under discussion and could yet change, these sources said.
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 consisting of Oracle, Silver Lake and others that was announced by U.S. President Donald 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.
(Reporting by Reuters newsroom, Editing by Franklin Paul)
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