The clock is ticking on the U.S. government’s ultimatum for ByteDance to sell TikTok or face banishment. As the app draws closer to the TikTok Ban Bill’s deadline, the question everyone’s asking is, “Who can buy TikTok?”
Is ByteDance even willing to sell? Will the ban actually push through if the company refuses to cut ties with the platform? Keep reading to find out the latest updates on TikTok’s ownership woes.
TikTok’s Sell-or-Be-Banned Dilemma: A Short Summary of Events
TikTok’s rise from a fledgling music app to becoming a force to be reckoned with was nothing short of spectacular. From dangerous challenges to questions about how it uses user data, the app has faced and overcome plenty of controversies.
Its biggest obstacle to date is the potential ban it faces in the U.S.
TikTok’s problematic dealings with the U.S. government stem from the latter’s “national security concerns” over the app’s “Chinese ownership.” TikTok’s parent company, ByteDance, has its roots in China, which the U.S. considers a “foreign adversary.”
Here’s a short summary of the highly controversial TikTok Ban Bill:
- In 2020, then-President Donald Trump attempted to ban TikTok and the Chinese-owned messaging app WeChat.
- In June 2021, President Joe Biden withdrew Trump’s executive orders that sought to ban TikTok and WeChat.
- In March 2024, the House of Representatives revived measures to ban the app when it passed the TikTok Ban Bill. The bill argues that TikTok poses “national security risks” because of its ties with the Chinese government.
- On April 24, 2024, President Biden signed the bill into law. The new law gives ByteDances nine months to divest from the app and sell it to a non-Chinese company. ByteDance also has an additional three-month grace period to sell (after the initial nine months) or face a US ban.
- A few days later, TikTok released a statement saying it would take legal action to fight the new law.
The latest statistics show that TikTok has 170 million American users. If the ban pushes through sometime in early 2025, the U.S. will stand to lose billions in revenue from the app. In 2023 alone, TikTok’s U.S. revenue reached $16 billion.
Who Can Afford To Buy TikTok?
With an estimated value of 100 billion U.S. Dollars, who can afford to buy TikTok? The most likely candidates are Microsoft, Oracle, and Walmart, according to Wedbush Securities analyst Dan Ives in a CBS interview.
Former Treasury Secretary Steven Munchin has also expressed interest in the social media platform. He previously told CNBC that he was putting together a coalition of private investors for the acquisition of the much-sought-after platform.
However, in a BBC report in April, ByteDance stated that it has no intention of selling TikTok.
TikTok’s $100 billion selling price presupposes the inclusion of its highly prized algorithm. Without the algorithm, the app will be much less valuable to suitors. Its value may go down to only $30 to $40 billion, according to Ives.
Who Currently Owns TikTok?
TikTok’s parent company, ByteDance, is a privately held global company with shared ownership among the following global institutional investors:
- Carlyle Group, Blackrock, General Atlantic, and Susquehanna International Group, among others, have an estimated combined 60% share.
- Chinese entrepreneur and ByteDance founder Zhang Yiming, with a 20% share.
- ByteDance employees worldwide, including over 7,000 U.S.-based employees, with the remaining 20% shares.
ByteDance, a Chinese tech firm, was first developed in 2012 by Zhang Yiming and Liang Rubo, then Nankai University college roommates. ByteDance is currently based in Beijing but registered in the Cayman Islands.
TikTok’s Future in the U.S. Could Still Go Either Way
Potential buyers are eagerly lining up to acquire the app; meanwhile, ByteDance has no intentions of selling. Who can buy TikTok? It’s anybody’s guess for now.
TikTok’s fate remains a big question mark for users in the U.S. The future of brands and creators that rely on the platform for their livelihood continues to hang in the balance.
Will the potential ban of TikTok in the U.S. affect your livelihood or creative endeavors? Now is the best time to reinforce your social media presence. Sign up for a High Social plan to accelerate your follower growth on the platform.
Build a solid community that will stick with you through TikTok’s uncertainties with High Social’s advanced, proprietary AI targeting technology. Start growing your TikTok today!
Who Can Buy TikTok? Frequently Asked Questions
There are still a lot of questions about what the future holds for the popular, Chinese-owned video-sharing platform. Here are a few more FAQ to sum up what we know so far.
With its powerful and proprietary algorithm, TikTok’s estimated selling value is $100 billion. However, ByteDance insists that it will never sell its massively popular app.
If it does, TikTok’s parent company will likely exclude the algorithm from the sale. In this case, the app’s selling price would be much lower, at $30 to $40 billion.
TikTok is yet to be sold to any company and its parent company, ByteDance, has stated that it will never do so. TikTok CEO Shou Chew believes that “the facts and the Constitution are on our side” and they’ll prevail against the looming ban.
