Bloomberg Intelligence ByteDance to Get About 50% of TikTok US Profit Under Trump Deal
Sep 26, 2025
George Ferguson, a Senior Aerospace, Defense & Airlines Analyst at Bloomberg Intelligence, provides insights into the implications of the FAA restoring Boeing's certification powers. He shares how this could enable Boeing to ramp up production rates and improve cash flow. The discussion also touches on the growing concerns over labor shortages in the aircraft industry, highlighting signs of recovery in supply chains and productivity. The conversation weaves through the complexities of TikTok's parent company profits under Trump's proposed deal, showcasing the intricate dance of business and regulation.
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ByteDance Keeps Core Operational Control
- ByteDance will retain control of data, content, and the algorithm while running day-to-day ad and e-commerce operations for TikTok US.
- That operational control explains why ByteDance could keep roughly half the platform's US profits despite selling majority ownership.
Profit Split Reflects Operational Value
- The reported deal structure would give ByteDance about 50% of TikTok US profits even if US investors hold majority economic ownership.
- Mandeep Singh explains this split compensates for ByteDance's continued role in running ads and e-commerce and for hosting expertise gaps.
Valuation Lowered By Hidden Operational Costs
- Converting hosting revenue into ownership makes costs and incentives shift for buyers like Oracle, lowering the effective price they would pay.
- That explains why a $14 billion valuation can coexist with US buyers taking operational burdens and profit-sharing deals.