A recent Wall Street Journal report reveals that ByteDance, TikTok’s parent company, valued itself at $300 billion in a recent share buyback program.
This valuation matches a previous buyback offer reported by the WSJ in September 2022. However, this represents a rebound for the company, as its valuation had reportedly dropped by 26% to $223 billion just a year ago.
TikTok’s future in the United States appears brighter following Donald Trump’s re-election. During his previous term, Trump advocated for banning the app. However, he has since pledged to “SAVE TIK TOK IN AMERICA.” This shift in stance is significant given that President Biden signed a bill in April mandating TikTok’s sale by ByteDance within nine months (with a potential three-month extension) or face a ban.
ByteDance is currently suing the US government over this legislation. Adding to the complexity, prominent Republican donor Jeff Yass is a major ByteDance investor. These factors combined suggest a more favorable outlook for TikTok under the new administration.
However, we will have to wait and see if TikTok will face a ban in the US following Trump’s takeover.
TikTok has recently been outed for allowing questionable live streams on the platform hosting underage people stripping on camera for money in the form of digital “gifts” or “coins.” This was revealed in a set of internal company documents examined by NPR, which also revealed how TikTok favors attractive people’s uploads for more engagement.
The executives are fully aware of how disruptive TikTok’s addictive nature is for children, but only added the parental controls for PR.
