this post was submitted on 26 Sep 2025
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Uncertainty reigns as Trump claims China approved TikTok deal.

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[–] humanspiral@lemmy.ca 2 points 4 days ago* (last edited 4 days ago)

China has cleared regulatory hurdles to allow a deal on their terms. Deal includes leasing the algorithm at a 20% revenue royalty. Which is $2-$3B payment/year to ByteDance. Previous valuations of US operations were $40B at high end which means profit under $2B/year, and so the buyers are buying a money losing business that they have to invest to grow sales and lose even more from the royalty payments. ByteDance shareholders (many American) love this deal because they get $14B (or 45% of it) + all of the profits they were ever going to get in the future.

The criticism that this is a sweetheart deal for MAGA supporters is false. This is just Zionazi media consolidation to ensure Zionazi/MAGA censorship. Like all Zionazi media, operational profit is not the purpose.