"President Donald Trump signed an executive order on Thursday, clearing the way for a deal to put TikTok in U.S. hands following a divestiture by its Chinese parent ByteDance. That avoids a total shutdown of the app in the U.S. that was required by law unless TikTok shed its China-based owner. Speaking as the president signed the executive order in the Oval Office, Vance pegged TikTok's worth at $14 billion-equal to Snapchat parent Snap."
""This is crazy. I mean, the number's got to be wrong. It doesn't make any sense," Brent Thill, senior technology analyst at Jefferies, told CNBC on Thursday. Ashwin Binwani, founder of Alpha Binwani Capital, told Bloomberg Vance's $14 billion assessment is only one-third of TikTok's actual value. "By every major financial metric and peer comparison, this price tag looks dramatically misaligned with reality," he said."
President Donald Trump signed an executive order enabling a deal to place TikTok in U.S. hands after a divestiture by owner ByteDance, preventing a legally mandated shutdown unless the China-based owner was shed. Vice President JD Vance estimated TikTok's value at $14 billion, comparable to Snap, while acknowledging buyers will ultimately set price. Analysts called the assessment far too low; some estimate TikTok's value between $40 billion and over $100 billion depending on control of the algorithm. Reports indicate Oracle will recreate the algorithm and build a secure U.S. version, with the algorithm slated to be controlled by American investors.
Read at Fortune
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