TikTok is generating a lot of money in the US, which could increase the price at which the platform is sold

Despite the fact that the US government is working on a law that could ban TikTok in the country, there is no denying that the app is a huge success in the US. Revenues in the US from the platform last year totalled $16 billion and with such strong results, if ByteDance decides to sell its stake in TikTok, it could ask for and receive a higher amount than originally expected.

Here's What We Know

The Financial Times, citing five sources familiar with TikTok's financial situation, said that $16 billion in revenue in 2023 is not only the highest in TikTok's history in the U.S., but also an amount that could raise the platform's value to $150 billion. What makes the sale of TikTok easy for ByteDance is the fact that most of the Chinese company's revenue comes from its operations based in China. Because ByteDance is not a publicly traded company, its financial statements are confidential.

ByteDance had total revenue of $120 billion last year, a 40% increase from 2022. And while ByteDance had $28 billion in revenue last year, TikTok is still experiencing losses, something a potential buyer would have to consider when forming a bid.

A bill to protect Americans from foreign-controlled adversary apps, which would ban TikTok in the U.S. if ByteDance were to abandon it, has passed the House of Representatives and has already made its way to the Senate. The bill targets TikTok, but could also affect other apps that collect US user profiles and are controlled by a "foreign adversary".

On the other hand, China is against the forced sale of TikTok, although Beijing would have to approve any deal reached to buy the platform from ByteDance.

Source: The Financial Times