The situation: ByteDance will maintain control over TikTok’s US ecommerce and advertising businesses under the deal brokered by the White House, according to Reuters.

The arrangement: Per the current agreement, TikTok US will be split into two companies, sources told Reuters.

• One will be owned by a consortium of investors, including Oracle and Rupert Murdoch, and have responsibility for managing backend operations as well as US user data and the all-important algorithm.
• However, TikTok’s revenue-generating businesses, including TikTok Shop and its lucrative advertising engine, will be housed in a separate company owned entirely by ByteDance.

Not a done deal: The conditions could still change, but as it stands, ByteDance’s continued involvement—and financial interest—in TikTok’s US business raises questions about whether the deal complies with the 2024 sale-or-ban law. There is also the issue of how revenues will be shared if the Chinese company controls the app’s profit engines.

And there are other unknowns, including whether Beijing will bless the sale and what a US-specific version of TikTok might look like.

What it means for TikTok Shop: The deal is unlikely to change brands’ approach to TikTok Shop in the short term, since many already assumed a ban would not take place. ByteDance’s continued involvement could also reassure sellers that ecommerce will remain a priority for the app, which was not a guarantee under TikTok’s new US ownership.