TikTok is generating big bucks in the U.S. which might hike the price that the unit sells for

TikTok is generating big bucks in the U.S. which might hike the price that the unit sells for،

Even though the US government is working on legislation that would ban TikTok in the country (unless the current parent company, ByteDance, divests itself from the platform), it is clear that the application is enjoying enormous success in the United States . U.S. revenues totaled $16 billion last year and with such strong results, if ByteDance decides to sell its stake in TikTok, it could ask for and receive a larger sum than it initially expected.

The Financial Times cited five sources familiar with TikTok's financial situation, who said that not only was the $16 billion in revenue generated in 2023 the highest total in TikTok's history in the United States, but that amount could pushing the value of the platform to a single figure of up to $150 billion. What makes the sale of TikTok easy for ByteDance to accept is the fact that most of the Chinese company's revenue comes from its operations located in China. Since ByteDance is not a public company, its financial records are private.

ByteDance had total revenue of $120 billion last year, up 40% from 2022 revenue. And even though ByteDance made profits of $28 billion in the year latest, TikTok continues to spill red ink, something any potential buyer will need to consider when making an offer. ByteDance is believed to have close relations with China's communist government and there are fears that TikTok is collecting US users' personal information and sending it to a server set up at an office in Beijing.

TikTok generated $16 billion in revenue in the United States last year

THE Protecting Americans from Apps Controlled by Foreign Adversaries Act, which would ban TikTok in the United States unless it is divested by ByteDance, passed the House by a margin of 352-65. The bill targets TikTok, but could also impact other apps that collect profiles of U.S. users and are “controlled by a foreign adversary.” This means that these apps cannot be “subject to the direction or control” of anyone in Russia, China, North Korea or Iran.

The bill now heads to the Senate, where it is expected to have a harder time passing. If so, the House and Senate reconcile the differences between their bills and vote. If the bill passes both the House and Senate, the next stop will be the President's desk and President Biden has said he will sign the bill if it reaches his desk.

China, on the other hand, opposes a forced sale of TikTok, although Beijing will have to sign any agreement reached to buy the platform from ByteDance.