Sat Sep 27 09:00:00 UTC 2025: ## TikTok’s US Business Valuation Sparks Controversy, Seen as Potential “Daylight Robbery”

**Washington D.C.** – The Trump administration’s estimated $14 billion valuation for TikTok’s US business has ignited a firestorm of controversy, with investors calling the figure a significant undervaluation and a potential “daylight robbery.” The estimate, recently cited by Vice President JD Vance, is far below previous projections that reached closer to $40 billion, raising questions about the fairness of the deal and the potential implications for ByteDance, TikTok’s Chinese parent company.

According to sources familiar with the matter, companies like Oracle and Silver Lake Management are considering purchasing the US operation from ByteDance in order to satisfy U.S. national security concerns. President Trump is keen to see American investors in control of TikTok’s US operations.

While potential buyers might welcome the low valuation, ByteDance and its investors could see it as insulting. Ashwin Binwani, founder of Alpha Binwani Capital, calls the proposed figure “the most undervalued tech acquisition of the decade,” estimating it reflects only a third of TikTok’s true value.

TikTok’s US operation, with 170 million active users, is the company’s most lucrative market, generating over $10 billion in annual revenue. At the proposed valuation, TikTok US would carry a price-to-sales ratio of roughly 1.4 times, comparable to mature, low-growth companies, which is a far cry from that of other high growth social media platforms.

Experts like Vey-Sern Ling, senior equity adviser for Asia technology at Union Bancaire Privee, are even stronger in their assessment, calling the suggested value “daylight robbery.”

The proposed deal, which must be finalized within 120 days, would spin out TikTok US into a new joint venture where ByteDance’s stake would be reduced to less than 20%. While President Trump claims Chinese President Xi Jinping has given his blessing, Beijing has yet to publicly confirm its approval.

Alvin Foo, a venture partner at Zero2Launch, highlighted the uncertainty surrounding the deal, stating, “It’s like you’re putting a gun to ByteDance and saying ‘sell or you stop.'” He also emphasized the need for dialogue with the Chinese government to ensure the sale proceeds smoothly. The fate of TikTok’s US business and its valuation remain uncertain as negotiations continue.

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