Do we like ByteDance?
Beijing-based tech giant behind TikTok, Douyin, CapCut and the Doubao AI assistant; incorporated in the Cayman Islands.
Our score: 3 out of 10. We wouldn't back them. The product is hugely popular, but they have big regulator fines, a string of child-harm lawsuits and unresolved questions about Chinese state links.
ByteDance was founded in 2012 by Zhang Yiming and his friend Liang Rubo. It began with a news app and grew into the owner of TikTok, Douyin and CapCut. Zhang stepped down as CEO in 2021 and Liang took over. Zhang still holds super-voting shares, so he keeps control.
The big drama was national security. Congress passed a law requiring ByteDance to cut ties with TikTok's US operations or face a ban, and the Supreme Court upheld it in January 2025. The worry was ByteDance's tie to the Chinese government.
The fix was a US joint venture that closed on 22 January 2026. Oracle, Silver Lake and Abu Dhabi's MGX hold 15% each, and ByteDance keeps 19.9%. ByteDance licenses the algorithm, which gets retrained on US data. Critics say the details still need independent checking.
Privacy regulators have not been kind. Ireland's DPC fined TikTok €345m in 2023 over children's data and €530m in 2025 over data transfers to China. It also said TikTok gave inaccurate information about storing data on Chinese servers. TikTok said it would appeal the 2025 fine.
Then there's the kids. Many US state attorneys general have sued, accusing TikTok of designing the app to hook young people. TikTok says the claims are misleading. We score it low because of the fines, the child-safety fights and the lingering control questions.