TikTok could soon be sold. Here's how much it's worth.

TikTok could beryllium nether caller ownership astatine this clip adjacent year, aft President Joe Biden connected Wednesday signed a bill that gives nan societal media institution astir 12 months to either divest from its Chinese proprietor aliases look a U.S. ban. 

TikTok is vowing to conflict nan caller rule successful nan courts, pinch CEO Shou Chou saying successful a video posted to nan work yesterday that "the facts and nan Constitution are connected our side." He added that TikTok expects "to prevail again," referring to Montana's efforts to prohibition nan app, which was blocked by a national judge.

That being said, TikTok is apt to pull attraction from galore suitors, fixed that nan societal media work is utilized by 6 successful 10 Americans nether nan property of 30. Its algorithm offers up perpetually scrolling videos pegged to users' individual interests and habits, creating an addictive watercourse that keeps them glued to nan app. 

That could beryllium highly valuable to a number of suitors, arsenic agelong arsenic TikTok is sold pinch its "golden jewel algorithm," Wedbush Securities expert Dan Ives told CBS MoneyWatch.

With nan algorithm, he said, "We estimate TikTok is worthy $100 billion."

But TikTok's proprietor could portion retired that proprietary portion of exertion successful a sale, making it overmuch little valuable to imaginable buyers, Ives added.

Here's what to know. 

Who owns TikTok now?

TikTok, pinch much than 170 cardinal American users, is simply a subsidiary of Chinese exertion patient ByteDance, which is why U.S. lawmakers picture nan institution arsenic "Chinese-owned."

But ByteDance's building is complicated, pinch nan Associated Press reporting that it is based successful Beijing but registered successful nan Cayman Islands. 

TikTok, for its part, argues its alleged ownership by a Chinese institution is simply a myth. In a 2023 posting connected its website, nan video level says that ByteDance is 60% owned by world organization investors, including Susquehanna International Group, Carlyle Group and General Atlantic. Another 20% is owned by ByteDance employees, while nan remaining 20% is owned by its founder, Chinese entrepreneur Zhang Yiming, nan institution says.

How overmuch is TikTok worthy successful 2024? 

TikTok is apt worthy $100 billion, according to Wedbush Securities expert Dan Ives. 

But that valuation is based connected TikTok's algorithm, nan logic written into nan package that decides which videos to service up to its users successful a changeless stream. Without nan algorithm, nan institution could beryllium sold for overmuch less, Ives said. 

"We judge China and ByteDance will ne'er waste this pinch nan aureate jewel algorithm. Without nan algorithm we judge TikTok is worthy $30 cardinal to $40 billion," he told CBS MoneyWatch. 

Who could bargain TikTok? 

Likely suitors would beryllium Microsoft, Oracle and Walmart, Ives said. But different companies and investors are apt to definitive interest, he added. 

"Private equity will swarm aft this woody arsenic good pinch [former Treasury Secretary Steven] Mnuchin and others," Ives said. 

Mnuchin told CNBC past period that he was moving connected a conjugation of investors to get TikTok, anticipating that nan divest-or-ban measure would go law. "It's a awesome business and I'm going to put together a group to bargain TikTok," Mnuchin told CNBC. 

How apt is it that TikTok will beryllium sold? 

It's difficult to say, but Ives said he believes there's a 75% chance TikTok will person caller ownership by early 2025. 

At nan aforesaid time, TikTok has antecedently succeeded successful blocking a prohibition done ineligible action, pinch a national judge ruling precocious past twelvemonth that Montana's effort to prohibition nan work "oversteps authorities powerfulness and infringes connected nan Constitutional authorities of users and businesses."

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