Business tycoons like Elon Musk could have to spend up to $50 billion to buy TikTok in the US if Chinese company ByteDance decides to sell the social networking app.
TikTok faces a ban on U.S. soil if the U.S. Supreme Court upholds a national security law that would punish service providers like Apple and Google if they allow downloads or updates to the app after a Jan. 19 deadline.
TikTok in the US is valued at 40 - 50 billion USD.
ByteDance has shown no signs of selling its US app, but the Chinese government has considered a plan for X owner Musk to buy back the operations, as part of several scenarios being considered, according to Bloomberg.
If ByteDance decides to sell, potential buyers could be looking at $40 billion to $50 billion, according to Angelo Zino, senior vice president at CFRA Research, who estimates TikTok’s U.S. operations are worth $10 billion to $15 billion. Zino based his valuation on estimates of TikTok’s U.S. user base and revenue compared to rival apps.
TikTok has an estimated 115 million monthly mobile users in the US, slightly below Instagram’s 131 million, according to market research firm Sensor Tower. That puts TikTok ahead of Snapchat, Pinterest and Reddit, which have 96 million, 74 million and 32 million monthly mobile users in the US, respectively.
Zino’s estimate, however, is lower than the more than $60 billion he valued TikTok at in March 2024, when the U.S. House of Representatives passed the initial national security bill that President Joe Biden signed into law the following month.
Along with billionaire Elon Musk, O'Leary Ventures Chairman Kevin O'Leary also plans to acquire TikTok's assets in the US.
Mr. Zino said the lower TikTok estimate was due to the current geopolitical situation and because “industry multiples have increased slightly” since March 2024. Zino’s estimate does not include TikTok’s valuable recommendation algorithms, which the US acquirer will not get as part of the deal.
Analysts at Bloomberg Intelligence estimated TikTok’s U.S. operations at $30 billion to $35 billion, a calculation they published in July 2024, when they explained that the app was “under duress.”
Finding a buyer for TikTok’s U.S. operations that can afford it and deal with the regulatory scrutiny that comes with privacy makes a sale difficult, Bloomberg Intelligence analysts note. That could also make it difficult for a buyer to expand TikTok’s advertising business.
A group of entrepreneurs including billionaire Frank McCourt and O'Leary Ventures chairman Kevin O'Leary have made a bid to buy TikTok from ByteDance. O'Leary has previously said the group would be willing to pay up to $20 billion for TikTok's U.S. assets without the algorithm.
Unlike Musk’s bid, O’Leary’s proposal would not be subject to regulatory scrutiny. Even so, O’Leary himself said the prospect of acquiring TikTok was slim.
Source: https://www.baogiaothong.vn/tiktok-tren-dat-my-co-gia-len-toi-50-ty-usd-19225011614140236.htm
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