Despite growing uncertainty over TikTok’s future in the United States, its Chinese parent company, ByteDance, has posted impressive financial results. Bloomberg reported that ByteDance’s profit surged by 60% in 2023, reaching over $40 billion, compared to $25 billion in 2022. This growth comes even as China’s economy slowed, largely driven by TikTok’s immense global popularity, particularly in the U.S., where the app boasts 170 million users. A recent Pew study revealed that TikTok is the fastest-growing social media platform in the country.
ByteDance’s profitability now surpasses that of its rival Tencent for the first time. The company continues to expand its reach, unveiling TikTok Shop in the U.S., allowing entrepreneurs to sell products directly on the app. In China, ByteDance’s Douyin has introduced e-commerce and food delivery features. Additionally, ByteDance is working on developing its own large language model and chatbots to compete with companies like OpenAI.
However, TikTok’s growth has also led to increased scrutiny. In March, the U.S. House of Representatives passed a bill that gives ByteDance two options: sell TikTok or face a ban in the U.S. The bill, which has gained bipartisan support, is a priority for some lawmakers, including Senator Chuck Schumer and President Biden, who has indicated he would sign the bill into law if it reaches his desk.
Republican leaders have been vocal in their opposition to TikTok, calling it a tool for Chinese propaganda. Former Vice President Mike Pence has launched a campaign to pressure the Senate to pass the bill, describing it as a crucial national security measure. Senate Minority Leader Mitch McConnell has also condemned TikTok, labeling it as “one of Beijing’s favorite tools of coercion and espionage.” ByteDance admitted in 2022 that former employees misused their access to surveil American journalists on TikTok.
Despite these tensions, the bill has faced challenges in the Senate, with free speech advocates and TikTok users pushing back against a potential ban. Many entrepreneurs who rely on the app for their businesses have also expressed concern.
If the bill does pass, ByteDance faces significant hurdles in selling TikTok. The Chinese government has indicated it would oppose a forced sale of the app, and the high value of TikTok—potentially worth tens of billions of dollars—would likely make it unaffordable for most companies except a few major American tech giants, raising potential antitrust issues.
It remains unclear how the presidential election will influence TikTok’s fate, with both candidates offering mixed signals. Former President Donald Trump previously reversed his stance on banning TikTok, suggesting it would only boost competitors like Facebook, which he referred to as an “enemy of the people.” Meanwhile, the Biden administration has praised the anti-TikTok bill, but Biden’s campaign has also partnered with TikTok to engage younger voters.
ByteDance has not independently verified its financial figures, and a company spokesperson declined to comment on market speculation, stating, “We don’t comment on market speculations.”
