Who Owns TikTok & Its Parent Company ByteDance?

There is much debate about the ownership of TikTok, the popular video-based social media app. Critics claim it is controlled by the Chinese government and collects its users’ personal data, which raises concerns about data privacy and censorship. However, the company states that it is primarily owned by investors outside China.

So, who is the owner of TikTok? In April, US President Joe Biden signed a bill that would ban TikTok from the US if ByteDance does not sell it within a year. TikTok sued the US government in May, claiming that the law is unconstitutional.

Why is ByteDance’s ownership of TikTok so controversial? In this article, we look at the information available about TikTok’s ownership structure.

Table of Contents Table of Contents

1. Key Takeaways
2. Who owns TikTok in 2024?
3. Who Owns ByteDance?
4. Does the Chinese Government Own or Control ByteDance or TikTok?
5. The Bottom Line
6. FAQs
7. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Who owns TikTok in 2024?
3. Who Owns ByteDance?
Show Full Guide
4. Does the Chinese Government Own or Control ByteDance or TikTok?
5. The Bottom Line
6. FAQs
7. References

Who owns TikTok in 2024?

TikTok Co-Founders

ByteDance Technology is a Chinese Internet company co-founded by entrepreneurs Zhang Yiming and Liang Rubo in Beijing, China, and incorporated in the Cayman Islands. Both have since moved to Singapore. Zhang was CEO of the company until 2021, at which point Liang took over the position.

Zhang’s net worth is estimated at $42.2 billion, according to the Bloomberg Billionaires Index.

ByteDance launched the TikTok app as an international version of its Douyin short-form video-sharing platform to target the larger Internet user base outside China and continue increasing its revenue.

When Did TikTok Come Out?

Following Douyin’s release in September 2016, ByteDance launched TikTok in September 2017.

Two months later, ByteDance acquired China-based social media video platform Musical.ly for close to $1 billion and merged the two apps’ user accounts.

Who Owns ByteDance?

Who owns TikTok’s parent company? Today, around 60% of TikTok’s parent company, ByteDance, is owned by global institutional investors such as Carlyle Group, General Atlantic, and Susquehanna International Group, according to TikTok’s website.

Another 20% is owned by ByteDance employees in various countries, and the remaining 20% is owned by the company’s founders.

TikTok’s Biggest Shareholders

Is TikTok a public company? TikTok remains a private company owned by ByteDance. As it is not a public company there are no TikTok shares or TikTok shareholders.

The following chart represents ByteDance’s corporate structure:

Does the Chinese Government Own or Control ByteDance or TikTok?

The Chinese government does not own TikTok’s parent company ByteDance.

However, to comply with Chinese law to operate news and information products that are offered only in China, an entity affiliated with the Chinese government owns a 1% stake in ByteDance subsidiary Douyin Information Service.

ByteDance Leadership

There are five members of ByteDance’s board of directors, Singapore-based ByteDance CEO Rubo Liang representing the company and its employees and four of whom represent TikTok investors:

Can Beijing Prevent the Sale of TikTok?

China’s Ministry of Commerce revised its export regulations in 2020 to take control over the export of technologies, including specialized algorithms, according to the New York Times.

This gives the Chinese government the power to prevent the sale of the TikTok company or app to a foreign entity.

The Bottom Line

TikTok is owned by ByteDance, a company headquartered in China, which continues to be a focal point of controversy, particularly concerning data privacy, censorship, and the influence of the Chinese government.

While ByteDance is privately held, with the majority of its ownership held by global institutional investors, the lingering concerns about its ties to Beijing and the potential for government interference remain potent. The situation is aggravated by the US government’s legislative actions aimed at banning TikTok unless ByteDance divests its ownership.

The outcome of this legal and geopolitical tug-of-war could have significant implications for TikTok’s future. Whether it will stay under the Chinese company’s control or be forced to change ownership remains uncertain.

FAQs