How much is the social media platform TikTok worth and who could buy it?!
Several parties have expressed interest in buying the platform, but ByteDance has repeatedly said it has no plans to sell. Experts have also noted that the Chinese government is unlikely to approve a sale that includes TikTok's coveted algorithm. But until the deadline passes, or until the U.S. Supreme Court takes action, the possibility of a purchase is still possible. Here's what you need to know:
How much is TikTok worth?
Wedbush analyst Dan Ives estimates that TikTok is worth “north of $100 billion” with the algorithm and potentially up to $200 billion in a “best-case scenario.” “Without the algorithm, it’s $40 billion to $50 billion,” Ives said, adding that he doesn’t believe ByteDance and Beijing will sell TikTok with the algorithm.
Lawyers for TikTok and ByteDance have argued that it is impossible to commercially and technologically strip the platform. They also say that any sale of TikTok without the platform’s coveted secret sauce algorithm, which Chinese authorities are likely to block under any sale plan, would turn the American version of TikTok into an island cut off from other global content.
US officials warned that the proprietary algorithm is vulnerable to manipulation by Chinese authorities, who could use it to shape content on the platform in a way that is difficult to detect.
Who is serious about buying TikTok?
Billionaire businessman and real estate mogul Frank McCourt and his internet advocacy group recently announced that they have submitted a proposal to buy the social media site from ByteDance. Celebrity Shark Tank investor Kevin O'Leary has also joined the effort. The group has not disclosed details of the offer.
If a sale occurs, the former Los Angeles Dodgers owner said he would plan to restructure TikTok and give people more agency “over their digital identities and data” by migrating the platform to an open-source protocol that allows for more transparency. Former Treasury Secretary Steven Mnuchin has also taken steps to buy TikTok.
Shortly after Congress passed the ban, Mnuchin told CNBC that he had begun putting together a group of investors that would buy the popular social media company. He did not provide details about who might be in the group or about TikTok's potential valuation.
When Mnuchin was Treasury secretary, he helped the Trump administration broker a deal in 2020 that would have seen US corporations Oracle and Walmart take a large stake in TikTok for national security reasons.
Several other names have been floated as potential buyers, including Tesla CEO Elon Musk, Jimmy Donaldson (MrBeast), who recently posted on social media about the possibility of such a deal, and former Blizzard-Activision CEO Bobby Kotick. However, whether these buyers are serious and actively gathering an offer for the company is unclear.
Can Trump intervene?
President-elect Donald Trump, who takes office on January 20, recently asked the court to put a pause on the law so he can find a "political solution" to the issue during his second term.
If the justices who heard oral arguments on Friday on the law grant his request, a potential ban on TikTok will be delayed. The Supreme Court is expected to rule within days. Trump’s transition team has not provided details on how Trump plans to fulfill his campaign promise to “save TikTok.” But spokeswoman Caroline Leavitt said in a statement in November that he plans to “make good on” his promise.
Once Trump takes office, it would be up to his Justice Department to enforce the law and punish any potential violators. On Wednesday, Pam Bondi, Trump's pick for Attorney General, dodged a question during a Senate hearing about whether she would support a ban on TikTok.
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