TikTok’s Chinese parent company will likely get about half of the profit from the platform’s US operation even after it sells majority ownership to American investors as part of a deal orchestrated by President Donald Trump, according to people familiar with the matter.
ByteDance Ltd. is expected to receive a licensing fee on all revenue generated from making its algorithm available to the US operating entity as well as a share of the profit in proportion to its equity stake, said the people, asking not to be identified because the terms are confidential. Overall, the Beijing-based parent company will probably get 50% or more of the overall profit of the US operation after its new owners take control, the people said.