TikTok’s $14B Price Tag in Trump Deal Stumps Investors

The $14 billion price tag proposed for TikTok’s US business values it more like a stuffy old energy or food company than a leading global social media firm.

TikTok’s video-sharing platform ranks among the most popular US social media properties based on average daily app usage.

Vance’s comments came as President Donald Trump pushed forward a plan for American investors to buy the US operation from Chinese internet firm ByteDance Ltd. Vance conceded that the purchasers will “ultimately” determine the amount paid.

While expected buyers, including Oracle Corp. and Silver Lake Management LLC, would likely welcome a low-ball valuation, ByteDance and its existing investors may find it amusing, if not insulting.

Ashwin Binwani, founder of Alpha Binwani Capital, said the proposal “could be the most undervalued tech acquisition of the decade.”

He estimated the floated figure reflects a third of TikTok’s true value. “By every major financial metric and peer comparison, this price tag looks dramatically misaligned with reality.”

TikTok’s video-sharing platform ranks among the most popular US social media properties based on average daily app usage. Its influence has also been felt in the proliferation of competing short-video services like Instagram Reels and YouTube Shorts.

Valuing it has always been difficult, particularly given the complexity of the app’s coveted content algorithm.

But even by the most conservative estimates, the US operation — the firm’s most lucrative market with 170 million active users — generates revenue north of $10 billion a year.

“The suggested value looks like daylight robbery,” said Vey-Sern Ling, senior equity adviser for Asia technology at Union Bancaire Privée.