How much is TikTok worth? What American companies could be interested in buying it?
The combination of political pressure, antitrust issues, and the looming threat of a forced sale create a labyrinthine situation for potential buyers.
TikTok, the short-form video app that has taken the world by storm, finds itself at a crossroads. The US government has harboured concerns about a Chinese-owned platform potentially wielding undue influence over American users’ data and content consumption. This has led to Congressional movements aimed at forcing the sale of TikTok’s US operations or banning it outright.
With its immense popularity and user base, the platform boasts a hefty price tag, but potential US buyers face a complex equation – navigating a sky-high valuation, political scrutiny, and the threat of antitrust concerns.
This bill to force the sale of TikTok is not a solution. Instead of banning TikTok and creating concerns over free speech, we should be having a holistic conversation about social media, data privacy, and mental health on all platforms. pic.twitter.com/vgIPMghN5M
— Congressman Jamaal Bowman (@RepBowman) March 18, 2024
How much is TikTok worth?
Merging its value with its Chinese counterpart Douyin, some reports suggest a combined brand valuation of a staggering $84 billion in 2023. Even focusing solely on TikTok itself, figures range around $50 billion. This valuation reflects TikTok’s dominance in the social media landscape as it has surged in popularity.
Its ability to capture user attention and cultivate trends is unparalleled, seemingly making it a goldmine for advertising and brand partnerships. The revenue of the app in the US was up to $20 billion last year.
Who could buy TikTok?
Given TikTok’s undeniable potential, American tech giants might seem like natural contenders for ownership. Companies like Microsoft, Alphabet (Google’s parent company), and Meta (Facebook’s parent company) all possess the financial muscle to handle such a mammoth acquisition. However, due to anti-trust legislation they would not be able to make a bid. Furthermore, navigating the complex process of severing ties with ByteDance, TikTok’s Chinese parent company, would pose a significant logistical challenge.
I’m voting NO on the TikTok forced sale bill.
— Alexandria Ocasio-Cortez (@AOC) March 13, 2024
This bill was incredibly rushed, from committee to vote in 4 days, with little explanation.
There are serious antitrust and privacy questions here, and any national security concerns should be laid out to the public prior to a vote.
Axios reports that ByteDance’s non-Chinese investors; General Atlantic, Sequoia Capital, and Susquehanna International Group, are the most likely buyers. Other investment groups including remnants of Activision are also said to be interested in a purchase.