TikTok

TikTok’s value would be cut in a forced sale

Americans account for 14% of users but their revenue contribution will be higher

TikTok is the star of social media. Upstart networks such as Donald Trump’s Truth Social and Meta’s Threads might reach thousands or millions of users, but TikTok’s audience exceeds a billion. It launched an in-app US shop before Elon Musk’s X, and its popularity has forced YouTube and Instagram to create rival short-video formats. These qualities make it an attractive acquisition target. Its price could, on paper, exceed $180bn.

On Wednesday, US lawmakers voted in favour of a bill that would force TikTok’s Chinese owner ByteDance to either sell the app or face an app store ban. There are two areas of concern: possible collection of US user data by China and the potential for China to use the app to influence its audience.

TikTok is a source of news for its young viewers, though it should be noted that its main appeal lies in entertainment. After all, the app’s most-liked video involves a girl pulling faces at the camera. The company has said ByteDance is not controlled by the Chinese government and that all US data is routed to Oracle Cloud.

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