ByteDance Ltd. aims to generate approximately $50 billion in profit in 2025, marking a record year for the Chinese social media leader, which is making significant inroads into e-commerce and new markets, UNN reports with reference to Bloomberg.
Details
The Beijing-based parent company of TikTok is on track to reach this mark after accumulating net profit of about $40 billion in the first three quarters of the year, sources familiar with the matter said. The company has already exceeded its internal 2025 target, said the sources, who asked to remain anonymous to discuss private financial metrics. This would bring the company's profit closer to that of US competitor Meta Platforms Inc., which is projected to earn about $60 billion this year.
TikTok Shop enters luxury market with $11,000 bags25.11.25, 18:17
Add
TikTok's success has come under scrutiny after the Biden administration led efforts to ban the Chinese-owned social media phenomenon in the US, citing national security concerns. ByteDance is now close to finalizing a plan to spin off the video service in the US, which would ensure the platform's survival while loosening the Chinese company's control.
According to an internal memo seen by Bloomberg, TikTok CEO Shou Chew told employees that ByteDance had signed binding agreements to create a joint venture, with a controlling stake held by US investors, including Oracle Corp. Chinese regulators have yet to say whether they will approve the deal — a key requirement for the agreement to close.
TikTok signed an agreement to sell its US division to US investors19.12.25, 04:20
Despite Washington's scrutiny, TikTok has rapidly expanded globally, including in the US. It is aggressively moving into e-commerce and live shopping, including partnering with major US tech companies such as Amazon.com Inc. On the same day Chew announced the deal, TikTok held its first-ever red carpet Oscar-style awards ceremony, The TikTok Awards, in Los Angeles.