Big Tech to rescue TikTok in US?
Experts estimate TikTok’s US operations at $100 billion, but this value may drop to $40 billion if its addictive algorithm isn’t included in a buyout. Despite revenue between $16-20 billion, heavy spending has left TikTok in the red.
With 170 million monthly users in the US, it’s a sought-after platform. But its profitability is uncertain, making potential buyers wary. ByteDance’s non-Chinese investors like General Atlantic and Sequoia Capital are seen as likely buyers due to their familiarity and ability to execute a deal.
Big Tech companies like Google and Amazon are unlikely to bid due to antitrust concerns. Other major players may also stay away. While TikTok’s popularity is undeniable, its financial situation poses challenges for potential buyers.
