Since the US Supreme Court affirmed the legislation prohibiting TikTok, everyone's attention has been focused on the estimated value of Bytedance's social media business.A US Federal legislation that requires such platforms to distance themselves from China-based parent business ByteDance or cease operations in the United States could ban the well-known content creation site TikTok on January 19.
Due to national security concerns regarding TikTok's Chinese ownership, the US Supreme Court upheld the ban on the video-sharing app on Friday.
The key to rescuing the app and keeping millions of US citizens from being blocked from accessing it is probably American ownership. ByteDance, the parent firm of TikTok, has stated time and again that it has no plans to sell the platform.
The True Value of TikTok: What Is It Worth?
The video-sharing/content-creation platform has been valued between $100 and $200 billion by experts and analysts.
According to Wedbush analyst Dan Ives, the app is valued at "well north of $100 billion," and in a "best case scenario," its value might increase to $200 billion due to its proprietary algorithm.
Experts have pointed out that it is quite improbable for the Chinese government to authorize a deal that also includes the sought-after algorithm.
Ives said, "Without the algorithm it’s $40 billion to $50 billion," according to The Associated Press. He stated that he doesn't think China and ByteDance would sell the algorithm to TikTok.
The Chinese-owned application's lawyers have asserted that a technological and commercial divestment of the platform is not feasible.
They said that the US version of the app would become an island cut off from the rest of the world's content if TikTok were to be sold without its proprietary formula, which Chinese authorities would likely prohibit in the event of a divestiture plan.
Notably, US officials have cautioned that Chinese authorities may be able to manipulate TikTok's proprietary algorithm to change the platform's existing content.
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