Just How Much is TikTok Worth? Let the Bidding Start at $100 Billion — Assuming ByteDance Allows the Sale

how much is TikTok worth
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how much is TikTok worth
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If ByteDance does divest from TikTok and allow its sale—just how much is TikTok worth? Estimates north of $100 billion are being thrown around by analysts.

According to a report from the Financial Times, TikTok has hit $16 billion in sales in the United States. That’s record revenue for 2023, with ByteDance on track to overtake Meta as the world’s largest social media company by sales. According to FT’s sources, ByteDance racked up $120 billion in revenues for 2023—an increase of 40% compared to 2022.

The future of TikTok in the United States has been cast into doubt after the U.S. House passed a bill to force ByteDance to divest from TikTok or face a ban. The legislation grants ByteDance 180 days to complete its divesture—which some experts believe isn’t enough time to complete a deal. Meanwhile, other sharks are circling with former gaming exec Bobby Kotick rumored to be among the interested.

The legislation still requires approval from the Senate, though President Joe Biden has signaled that if the bill passes the Senate—he will sign it.

Meanwhile, Wedbush analyst Dan Ives places the value of TikTok’s U.S. operations at $100 billion, but says it’s only valued at $40 billion without the app’s ‘addictive algorithm’ included in the sale. Despite TikTok’s U.S. revenue increasing, CEO Shou Zi Chew says the company is still operating in the red. With 170 million U.S. monthly active users, TikTok is currently building out its e-commerce business.

With valuation of TikTok starting at $100 billion, it’s unclear who would be in a position to bid. Big Tech companies like Meta and Google are likely non-starters due to anti-trust grounds—while individual execs like Bobby Kotick and former Treasury Secretary Steven Mnuchin have announced their interest. Mnuchin has signaled that he would welcome current investor participation in any kind of acquisition deal.