Despite all the security warnings with the Chinese app TikTok, the ByteDance app still beats other video-sharing software out there–, especially amid pandemic.
Due to its fame, even one of its main critic, the United States decided to take a share of the app by buying it from the Chinese company. How much will be the investment?
TikTok will soon be owned by the U.S.?
The Information via Tech Radar reported that American investors are now eyeing TikTok as part of the acquisition. After all, stock companies called this app as the “most valuable internet startup in the world.”
So we can’t really blame the group of investors based in the country that wants their share. The General Atlantic and Sequoia Capital reportedly plan to buy the entire company shares of the app from the ByteDance.
Once the purchase started, this could mean that the operations of the app would now be held in the U.S. Other than that, ByteDance will no longer be the major owner of TikTok but will have the least amount of shares of the software.
The company was said to be speaking with government authorities to loosen up the regulations of the app in America. Cleaning all the paths that TikTok could be facing once the acquisition is finished.
“This is the only viable plan,” the source said on The Information.
It is no longer new that U.S. companies are thinking of buying the billion-worth app. Financial Times said that New York-based private equity firms and Silicon Valley tech companies are already done their part of swaying Zhang Yiming, the president and founder of ByteDance, to sell its shares.
However, General Atlantic and Sequoia Capital might be the most advanced company that reached this far.
How much is TikTok?
Due to government rules, Americans are not able to buy stocks on the most sought-after Chinese app. Only people in China could be the ones buying their shares.
But how much does it really cost a businessman to buy shares from TikTok? Quora’s survey mentioned that the valuation of TikTok in 2020 will reach $75 billion. This means that if you will invest and totally purchase this app from ByteDance, the amount may also reach billions of dollars.
Can this happen?
As of now, the administration of President Donald Trump does not want anything related to Chinese companies, involving TikTok.
One of his top economic advisers even said that there are huge chances that the app could be banned in the country, in one condition, make way to “operate as an independent American company.”
In this way, the banning will not proceed and they will still have investments from the American community.
India bans TikTok
We all first heard that India already banned TikTok in its country. Along with TikTok, the government also tasked 58 other apps (mostly Chinese-owned) to be removed for good to any of their access from their citizens.
“The compilation of these data, its mining and profiling by elements hostile to national security and defense of India,” said on the press release.