The US decisions regarding TikTok relate to national security concerns. These decisions could lead to the app being banned in the US or forced to be sold, which would significantly impact its profits in the US market.
However, available information does not indicate that these decisions will completely bankrupt its parent company, ByteDance, given its strong global profits. However, they could lead to TikTok being shut down in the US or changing its ownership.
Who owns TikTok?
TikTok is owned by the Chinese internet company ByteDance. Although its founders are Chinese entrepreneurs, ByteDance is a private global company, approximately 60% owned by global institutional investors, 20% by its founders, and 20% by its employees, including those based in the United States. The company asserts that it is not owned or controlled by any government or state-run entity.
Why has TikTok gained such widespread popularity in the United States?
TikTok has gained significant popularity in the United States, particularly among younger users, for several key reasons:
- Viral content and trends: TikTok’s algorithm relies on displaying engaging content to users, leading to rapid virality of videos, trends, and challenges.
- Entertainment value: The app offers short, fun, and easy-to-watch videos, often humorous and relevant to users’ lives.
- Appeal to Gen Z: The app has resonated strongly with Gen Z users seeking authentic and engaging content.
- Ease of use and the “For You” page: The dedicated “For You” page’s homepage provides an endless stream of fresh content, focusing on users’ interests rather than creator popularity.
- Music integration and creative tools: These features make it easier to create and enjoy content.
- Influencer marketing and user-generated content: The app has become an effective platform for creators, brands, and small businesses.
- Habit factor: Short videos and autoplay contribute to high levels of user engagement.
Trump’s Promises on TikTok
US President Donald Trump’s stance on TikTok has been marked by marked contradiction. Here are some of his most notable public statements:
In August 2020, he issued an executive order expressing his concerns about ByteDance’s ties to the Chinese government and its collection of data.
With the January 2025 deadline for a US law banning TikTok (unless it is sold) set to go into effect, Trump promised to delay or suspend the ban.
Executive Promises:
Trump indicated he would sign an executive order to extend the period before the law’s ban takes effect, with the goal of “reaching an agreement to protect our national security” and keep TikTok operating.
Trump proposed that the US acquire a 50% stake in TikTok.
Actual Actions:
Trump’s actions included extending the period before the ban imposed by Congress, using executive power to keep the app in the US despite the legislation. The latest extension was signed on June 19, 2025, extending the deadline by another 90 days and delaying the potential ban until September 17, 2025. This is the third extension signed by Trump.
Who are the potential candidates to buy TikTok?
Regarding potential candidates for buying TikTok, several names and parties have emerged, including:
Elon Musk:
His name has been repeatedly mentioned as a potential candidate, especially after his purchase of Twitter (now X) and his ties to Trump and China.
Larry Ellison and Oracle:
Larry Ellison, Oracle chairman and a Trump supporter, is considered a strong candidate. Oracle entered into previous talks to buy TikTok in 2020 and already has a partnership with TikTok to provide cloud infrastructure. It is believed that any Oracle bid would be in conjunction with other investors.
Microsoft:
Microsoft was one of the first companies to express strong interest in buying TikTok in 2020 and remains a strong player given its significant financial strength.
Amazon:
Amazon has reportedly been interested in making an offer for TikTok.
MrBeast (Jimmy Donaldson):
The famous YouTuber has announced his interest in acquiring TikTok and is teaming up with a group of investors to make a cash offer.
Frank McCourt and Project Liberty:
Entrepreneur Frank McCourt leads a group of investors, including Kevin O’Leary (of Shark Tank) and Alexis Ohanian (co-founder of Reddit), who have made an offer to acquire TikTok with the goal of creating a decentralized platform where users own their data.
Perplexity AI:
The AI-powered search engine has expressed interest in merging with ByteDance.
AppLovin:
This software company has made an offer to acquire TikTok.
Will ByteDance’s financial position be affected by the US decisions?
ByteDance, the parent company of TikTok, has a very strong financial position, despite the regulatory challenges it faces, particularly in the United States.
Here are highlights of its financial position:
ByteDance’s total revenue:
- 2023: Approximately $120 billion (revenue from all services). Some sources indicate $110 billion or $112 billion.
- 2024: Reached approximately $155 billion (revenue from all services).
ByteDance’s earnings:
- 2023: Approximately $40 billion (EBITDA).
- 2024: Net profit reached approximately $33 billion to $36.3 billion (from all services).
TikTok’s revenue (specifically):
- 2023: TikTok’s global advertising revenue was estimated at approximately $14.15 billion. In the US alone, TikTok’s revenue is estimated to be between $6.2 billion and $16 billion.
- 2024: TikTok’s global advertising revenue is expected to reach approximately $18.5 billion. Its revenue in the US alone is expected to reach $7.7 billion.
TikTok’s revenue from in-app purchases:
TikTok generated $6 billion from in-app purchases in 2024 (including the Chinese app Douyin).
TikTok and Douyin (the Chinese version of TikTok) contribute significantly to this strong revenue, particularly by attracting advertisers.
Valuation and Market Cap:
ByteDance is one of the most valuable private technology companies in the world.
In late 2024, the company was valued at approximately $300 billion, although this figure has fluctuated. The company’s valuation previously exceeded $400 billion, but it declined in 2023 before recovering.
Challenges:
- Despite strong growth, some reports indicate a slowdown in revenue growth and profit margins in 2024.
- Internal challenges related to advertising are mounting, as are external challenges related to TikTok’s future in the United States and the company’s investments in artificial intelligence.
Overall, ByteDance remains a highly profitable and profitable company in the global technology sector, outperforming many major competitors, such as Tencent, on some financial indicators.
Also read:
- the-age-of-ai-agents
- a-leak-reveals-the-iphone-17s-battery-capacity-predicting-radical-changes
- samsung-unveils-its-thinnest-phone-the-galaxy-z-fold-7
- a-self-driving-tesla-taxi-crashes-into-a-parked-vehicle
