ByteDance, the Chinese company that owns TikTok, is projecting profits of approximately $50 billion in 2025. This would
mark a record year for the social media giant as it expands its reach in e-commerce and new markets.
Sources familiar with the matter, who requested anonymity, report that the Beijing-based company's net income reached
around $40 billion in the first three quarters of the year. This performance has already exceeded ByteDance's internal
target for 2025. If the forecast holds, ByteDance's earnings would approach those of its U.S. competitor, Meta Platforms
Inc., which is expected to earn about $60 billion this year.
A ByteDance spokesperson has not yet responded to requests for comment.
The success of TikTok has drawn increased attention, particularly from the Biden administration, which has sought to ban
the app in the U.S. due to national security concerns. ByteDance is reportedly nearing completion of a plan to separate
TikTok's U.S. operations into a new entity, a move designed to ensure the platform's survival while reducing the Chinese
According to an internal memo reviewed by Bloomberg, TikTok CEO Shou Chew informed employees that ByteDance has signed
agreements to establish a joint venture majority-owned by American investors, including Oracle Corp. However, the deal
requires approval from Chinese regulators before it can proceed.
Despite regulatory scrutiny in Washington, TikTok has experienced rapid global expansion, including in the U.S. The
platform has been actively investing in e-commerce and livestream shopping, forming partnerships with major American
tech companies like Amazon.com Inc. Coinciding with Chew's announcement of the agreement, TikTok hosted its inaugural
awards show, The TikTok Awards, in Los Angeles.
While the precise increase in ByteDance's revenue this year remains unclear, Bloomberg News previously reported that the
company aimed for a 20% increase in 2025 sales, targeting $186 billion.
Founded in 2012 by Zhang Yiming, ByteDance has consistently achieved growth rates exceeding 20% annually. The company
has developed several popular digital services in China, including Toutiao and Douyin, the Chinese version of TikTok.
ByteDance is also competing with Alibaba Group Holding Ltd. and Tencent Holdings Ltd. in the field of artificial
intelligence, developing large language models, chatbots, and related services.
This projected revenue growth would place the Chinese internet company slightly behind Meta, which anticipates revenues
of approximately $200 billion this year. ByteDance reports having over 4 billion monthly active users across its suite
of apps, a figure comparable to Meta's user base.
Last year, SoftBank Group Corp.’s Vision Fund reassessed ByteDance’s valuation at over $400 billion, partly due to its
growing involvement in generative AI. Fidelity Investments and T. Rowe Price Group Inc. have also increased their
valuations of ByteDance, estimating its worth at over $410 billion and $450 billion, respectively, according to
Bloomberg News. More recently, a Chinese investment firm purchased a block of ByteDance Ltd. shares at a valuation of
$480 billion, significantly higher than recent levels, indicating strong investor confidence.
As of Thursday's market close in the U.S., Meta's valuation stood at approximately $1.7 trillion, making it the
However, ByteDance's future growth may be slower compared to previous years. Douyin, its primary revenue source, is
facing challenges due to reduced consumption and advertising spending in China. Consequently, TikTok is increasingly
contributing to the company's overall revenue growth.