TikTok’s value in the US could reach $100 billion and does not include the algorithm

In the face of a possible sale to US buyers, TikTok would be worth 100 billion dollars, but the value does not include the purchase of the network’s algorithm

The US government has already established that the Tick ​​tock it must be sold to an American company within the next year to avoid being banned in the country. Little by little, some names express interest in purchasing the video platform, but the process will not be cheap: the Wired website indicates that the network could be worth 100 billion dollars (about R$ 500 billion) – and the figure does not include the app algorithm.

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One of the interested parties would be the American billionaire Frank McCourt, who built part of his fortune in real estate. McCourt is the current owner of the French soccer club Olympique de Marseille and founder of Project Liberty, an initiative aimed at increasing social media users’ control over their data.

The billionaire publicly declared his interest in buying TikTok last week, along with Guggenheim Securities and Kirkland & Ellis. Despite the $100 billion valuation, the tycoon has yet to publicly mention any value.

In a statement, Project Liberty states that TikTok’s proposal “offers an innovative and alternative vision of the platform’s infrastructure, capable of allowing people to regain control of their data and digital identities by proposing a migration towards an open digital platform source”. The offer is seen by the initiative as “an opportunity to put control and values ​​back into the hands of individuals and provide Americans with choice, a meaningful voice and a stake in the future of the web.”

To Wired, a spokesperson for Project Liberty said that potential buyers have not yet contacted ByteDance, TikTok’s parent company.

The algorithm is excluded

It is worth noting that the amounts indicated do not include the purchase of the social network’s algorithm, used to determine recommendations in the feed of each account on the platform. Chinese government prevents ByteDance from selling it technology to a foreign buyer in compliance with the rules established after the first sanctions of the former president Donald Trump to the network in 2020.

Therefore the purchase would only include the application and may involve some changes to the interface, but the algorithm would remain intact.

United States x TikTok

A law of the United States government, sanctioned by President Joe Biden on April 24, stipulates that TikTok’s business in the country be sold by ByteDance to an American company or else the app will be banned in the Land of Uncle Sam. The parent company would have up to nine months to find a buyer, with the option to extend the period for another 90 days (i.e. a year).

The law is recent, but the fight has been going on for many years: it began in 2020, when former President Donald Trump accused the platform of collecting data from American users and sending it to the Chinese government. The situation already involves hearings with the CEO, sanctions, blocking of cell phones linked to the American government and now the possibility of banning them.

TikTok has already said it will fight the ban and sued the US government, so it is not yet certain that the network will be sold. To find out more, take a look the entire history of the dispute between the country and the social network.

Source: Wired

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.