Any sale of TikTok would also need the approval of the Chinese government.

How valuable is TikTok and who might buy it?

The most valuable aspect of TikTok is its algorithm, which surfaces videos that aim to consistently attract the attention of its users in the U.S.

“TikTok’s ability to serve up relevant and entertaining content to its users is unparalleled in the social media world,” said Jasmine Enberg, a principal analyst with insights provider Emarketer, in a statement.

Enberg noted that U.S. users spend 54 minutes on TikTok each day, compared with 35 minutes a day on Instagram’s app.

If ByteDance sells TikTok with its algorithm — which is unlikely — the platform would be worth $100 billion. Without the algorithm, TikTok would have a valuation of $30 billion to $40 billion, said Daniel Ives, a managing director with Wedbush Securities.

The most likely bidders? Computer software giants Microsoft and Oracle, analysts said.

“This would be a major strategic asset that would enable these tech stalwarts to have a massive consumer platform,” Ives said. “Data is gold and TikTok would be like finding a gold mine for a tech stalwart.”

Microsoft declined to comment. Oracle did not immediately respond to a request for comment.

Microsoft in August 2020 had explored taking control of TikTok in the U.S., Canada, New Zealand and Australia, which would have helped the company expand its presence in social media. But in September 2020 Microsoft said that ByteDance had rejected its offer.

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