TikTok faces a potential ban, raising questions about its worth and possible buyers
Los Angeles: TikTok is in a bit of a pickle. There’s a law that could ban it by January 19 unless it cuts ties with its Chinese parent company, ByteDance. If that happens, it might have to shut down in the U.S.
Some folks are eyeing a purchase, but ByteDance insists it’s not selling. Experts think the Chinese government wouldn’t let go of TikTok’s valuable algorithm either.
Until the deadline hits or the Supreme Court steps in, there’s still a chance for a sale. So, how much is TikTok really worth?
According to analyst Dan Ives, TikTok could be valued at over $100 billion, especially with its algorithm. Without it, the value drops to around $40-50 billion. But Ives doubts ByteDance would sell it with the algorithm included.
Lawyers for TikTok argue that selling the platform without its algorithm would make it a shadow of its former self, disconnected from global content.
U.S. officials are worried that the algorithm could be manipulated by the Chinese government, which could influence what users see on the app.
Now, who’s looking to buy TikTok? Billionaire Frank McCourt and his internet group have thrown their hat in the ring, with Shark Tank’s Kevin O’Leary backing them up. They haven’t shared much about their bid yet.
If they succeed, McCourt plans to revamp TikTok, giving users more control over their data by moving to an open-source model.
Former Treasury Secretary Steven Mnuchin is also in the mix, trying to gather investors to buy TikTok. He previously worked on a deal that would have had Oracle and Walmart take a stake in the app back in 2020.
Other potential buyers include Elon Musk and MrBeast, but it’s unclear if they’re serious about making a move.
And what about Trump? He’s asked the court to pause the law so he can find a “political resolution” once he’s back in office. If the Supreme Court agrees, TikTok might get a temporary reprieve.
Trump’s team hasn’t shared how he plans to “save TikTok,” but they’re promising to deliver on that promise. Once he’s in office, it’ll be up to his Justice Department to enforce the law regarding TikTok.
