Overview

• Bloomberg reported that ByteDance is expected to receive roughly 50% of the U.S. unit’s profits through a mix of equity distributions and fees tied to licensing the recommendation algorithm.
• The Oracle-led consortium is identified as the buyer and plans to set up a new U.S. joint venture to operate TikTok domestically.
• ByteDance’s stake in the new U.S. company would be under 20%, with profit allocations reflecting that minority equity position.
• The recommendation engine would be licensed to the U.S. venture, and ByteDance could obtain a percentage of revenue as the algorithm fee.
• President Donald Trump signed an executive order on Sept. 25 approving the sale and designating Oracle to handle data and privacy management for U.S. operations.