How much is the company that owns TikTok worth?

How much is the company that owns TikTok worth? TikTok

Tik Tok is one of the most successful social media projects in recent years. Now this application, thanks to PR, is actively developing, gaining new users, which brings income to the owners from advertising and other traditional ways of earning money for such developments.

The proposed material considers how much Tik Tok costs, taking into account the history of the development of the network, investments made and the current share price.

Tik Tok Owner Cost

According to experts who provided information to world news agencies, the current value of the Tik Tok application exceeds 140 billion US dollars.

This indicator is due to the following reasons:

  • an increase in the popularity of the application, which led to a sharp increase in the number of users, which was clearly manifested in the previous two years;
  • investment in the project of well-known Japanese and American brands;
  • corporate profitability.
  • The platform is valued at the value of the shares of the Chinese corporation ByteDance, the owner of this social network. The owners of the application believe that the American segment of the corporation is worth at least $ 60 billion, which is an unaffordable price for a Tik Tok company for potential buyers.

    According to the latest data, the number of registered Tik Tok users in the United States alone has exceeded 100 million, and the number of subscribers with accounts worldwide has exceeded 700 million.

    But it should not be assumed that the Tik Tok project brings the greatest income to this corporation. According to experts, Douyin, a video application focused on the Chinese market, brings significant financial dividends.

    By capitalization, ByteDance competes with the following corporations:

  • HSBC – Worldwide Banking Corporation;
  • IBM, a manufacturer of computer chips;
  • Tencent and Alibaba are the world’s leading internet giants.
  • The executive and CEO of the company that owns the Tik Tok app is Kevin Meyer (who shares these positions), whose name was until recently associated with the Disney company, where he oversaw the work of streaming services.

    How much is the company that owns TikTok worth?

    Bytedance Profits in 2020

    The prospects of the company as an acquisition target for the world’s leading brands are confirmed by a significant increase in the corporation’s profit, the amount of which for 2019 and 2020 is shown in the table.

    calendar year Earned profit, USD billion
    2019 3
    2020 7

    By the way. It’s about net profit. Comparing the indicators, it can be noted that over the past period, income increased by more than 130 percent (2.33 times).

    US pressure

    It is not surprising that the US administration, seriously concerned about the economic development of this Chinese giant, is trying to impose restrictions on those who are going to buy shares in this corporation.

    Former President Trump intended to block TikTok’s access to the US market by accusing the company of handing over personal data of US citizens to China’s intelligence agencies.

    The attractiveness of the shares of this Chinese corporation has led to the participation in the struggle for their purchase of such well-known brands:

  • Microsoft – the company was one of the first to show interest in buying shares, starting negotiations with the presidential administration; a serious obstacle for this giant was the high price and unwillingness to pay more than 30 billion dollars for a block of shares;
  • Twitter – the owners of this social network are next in the race; for them, the attractiveness of the Tiktok audience lies in the young age of the app users; the problems of the said applicant for the purchase are similar to those of Microsoft – the transaction requires raising money from third-party investors, since there are not enough own funds;
  • Oracle – this corporation entered the race at the last moment, having calculated that this status purchase of shares is expedient, despite the risks.
  • Deal with Oracle

    As a result of these events, Oracle Corporation won. This company did not qualify to manage US cloud operations based on the Ticker platform by acquiring technology partner status.

    But politics intervened. Considering that in August 2020, Trump imposed a ban on TikTok in the United States, the deal could have fallen through. The risks of Oracle, which acquired 12 percent of the shares, have increased. Currently, the agreement reached has come into question due to the fact that the situation since the beginning of 2021 is being considered by the new administration of US President Joe Biden, which is studying the legality of the decision taken by the previous leadership.

    In addition, Oracle was forced to involve Walmart, which agreed to buy 7.5 percent of the shares, and the head of this company joined the board of directors of Tik Tok Global, the American segment of the corporation.

    Investment in Tik Tok

    In 2021, investing in the Tik Tok application is quite risky due to the ambiguous attitude of the US administration towards this company. A kind of trade war continues between America and China, in which even large corporations become hostages, with corresponding adverse consequences for financial investments.

    TikTokTik Tok

    It is possible that the new administration of the US President will not change the attitude of the previous leadership towards this Chinese company, which will cast doubt not only on the Oracle deal that has already been completed, but also increase the risks of other potential investors.

    Although the quote of the market price of the company’s shares according to the calculators of many evaluation sites for 2021 is quite high.

    Many are interested in how much the amount of the transaction was. According to media reports, the purchase cost $ 12 billion, while 80 percent of the shares of the future enterprise remain under the control of the corporation.

    Is it possible for an ordinary person to buy shares of Bytedance

    Tik Tok shares for 2021 are not available for free sale, so it is currently impossible for an ordinary person to invest in this market segment. The situation may change when the new owners settle all the details of the transaction, and the shares can be taken without restrictions.

    The cost of the Tik Tok app is one of the most pressing issues for many of the world’s leading corporations. After all, this company continues to grow rapidly. So much so that the prospects of this Chinese brand caused pressure from the administration of the American president.

    The Tik Tok application still maintains a leading position in the world, including among users of iPhones Huawei, Apple, Nokia and other models owned by owners from EU-US. And many English tiktokers who shoot short videos of their own apartments (tik tok houses) have become wealthy people, which explains the general tiktoker hype and the huge number of views of these videos.

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