Investors of TikTok’s China-based parent company ByteDance are looking to acquire TikTok, the short-form video social media app. They have estimated the video service at $50 billion.

ByteDance, which owns TikTok, is under US pressure over US government concerns about personal user data processed by the Chinese company. Due to the trade war between the countries, ByteDance risks being blacklisted by the US authorities. In such a case, TikTok will not be able to work in the country. At the moment, the Chinese company is considering several options of how the situation may develop.

Donald Trump Is Considering a TikTok Ban in the U.S. Over Coronavirus
Trump blames China for the spread of coronavirus, so he wants to punish the Beijing government and ban most Chinese apps. There is no exact list yet, but TikTok will be the first application that the U.S. authorities will ban.

To avoid TikTok blocking, some American investors, including Sequoia and General Atlantic, have offered ByteDance to transfer a majority stake of video service for $50 billion. Their offer is 50 times higher than the projected profits in 2020.

India Bans 59 Chinese Apps, Including TikTok, WeChat, and Weibo
Yesterday, the Ministry for Electronics and Information Technology announced the ban of 59 Chinese apps, stating that these apps were prejudicial to India’s sovereignty and integrity, its defense, and the security of the state and public order.

It is not yet known how the ByteDance management team reacted to this offer, but, according to sources in the company, the projected value of TikTok exceeds $50 billion. TikTok is developing very rapidly, and its owners expect to earn $6 billion in 2021. Earlier this year, during a private deal to sell a small stake held by Cheetah Mobile Inc., ByteDance was valued at $140 billion.

ByteDance Intends to Sell TikTok | The Internet Protocol
TikTok’s parent company, ByteDance, is exploring options to address US regulators’ worries, including selling its popular app.

If a TikTok-wide deal cannot be reached, ByteDance is also considering selling only the service's US divisions. The cost of such an agreement was not specified.

There is also another scenario in which a separate holding company for TikTok will be created with an independent board of directors.