TikTok US revenue hits $16B as forced sale looms

After the House passed a bill requiring the China owned app to be sold within six months or risk a total ban,

TikTok has seen its US revenue rise to a whopping $16 billion over the past year, pushing up the potential price tag for interested suitors.

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According to The Financial Times, the company's US sales surged to an all-time high, the highest in the company's -

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history, and it could be worth as much as $150 billion once the revenue surge is accounted for.

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ByteDance, TikTok's Beijing-based parent company, increased its revenue by 40% to $120 billion in 2023.

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Approximately 90% of this revenue is generated in China. Comparatively, Facebook's parent -

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company Meta generated $135 billion in revenue last year. Although ByteDance -

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reportedly posted a net profit of $28 billion last year, TikTok itself remains unprofitable.

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Although the House voted 352-65 in support of the Protecting Americans from Foreign Adversary -

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Controlled Applications Act on Wednesday based on concerns over the Chinese government's -

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influence over the popular video-sharing app. Chinese authorities and the parent company of TikTok, ByteDance, -

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have vowed to resist any attempt to force a sale. The US government has already identified a short list of potential buyers.

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Additionally, Byte Dance's leadership has been approached by former Activision-Blizzard CEO Bobby

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Kotick about a potential acquisition, according to a report in the Wall Street Journal.

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As a result of TikTok's steep price, prospective US buyers may find it difficult to obtain the financing needed to acquire the company.

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