"The tech giant seems poised to retain control over a number of TikTok's core business functions in the U.S., including its advertising, e-commerce, and recommendations systems, despite an executive order signed by Trump saying that "TikTok's United States application will be operated by a newly established joint venture based in the United States." The Chinese firm will also retain approximately 50% of the new U.S. TikTok's revenue, through a set of revenue-sharing agreements between the new U.S. TikTok entity and its former parent."
"In that agreement, too, the Chinese parent company would've retained visibility into - and in some cases, control over - key functions at the new U.S. entity, including decisions about budgeting, asset sales, debt, and bankruptcy. But even in the draft agreement that the Biden Administration rejected, ByteDance would have ceded some control over TikTok's U.S. advertising and e-commerce arms to the new U.S. TikTok entity."
ByteDance appears positioned to keep significant operational influence over TikTok's U.S. business, including advertising, e-commerce, and recommendation systems, while retaining roughly half of U.S. revenue through revenue-sharing agreements. An executive order asserts the new U.S. TikTok will be operated by a separate joint venture and have no operational relationship with ByteDance, but reporting indicates continued control and profit for the Chinese parent. The arrangement mirrors elements of a prior 2022 draft agreement that would have preserved ByteDance visibility into budgeting, asset sales, debt, and bankruptcy decisions. Earlier proposals created a U.S. legal entity called TikTok U.S. Data Services (U.S.D.S.).
Read at Forbes
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