Trump pushes $14 bn valuation for TikTok US, stirring investor backlash

The Trump administration’s estimated $14 billion valuation for TikTok’s U.S. business has stunned investors, with many arguing the figure grossly undervalues one of the most popular social media platforms in America. The estimate, disclosed by Vice President JD Vance on Thursday, is far below earlier projections of around $40 billion, sparking debate over whether the deal represents a bargain for potential buyers such as Oracle Corp. and Silver Lake Management LLC.

Vance acknowledged that the final purchase price will be determined by buyers and sellers, but the number floated by the administration has already rattled market observers, Bloomberg News reported. While prospective acquirers may view it as an opportunity, TikTok’s parent company ByteDance Ltd. and its investors are likely to see the valuation as a significant undercut.

“This could be the most undervalued tech acquisition of the decade,” said Ashwin Binwani, founder of Alpha Binwani Capital, in an interview with Bloomberg. “By every major financial metric and peer comparison, this price tag looks dramatically misaligned with reality.” He noted the suggested figure represents barely a third of TikTok’s US worth.

TikTok’s US operations are widely regarded as its most valuable unit, boasting 170 million active users and estimated annual revenue of more than $10 billion. Its cultural influence is unmatched, shaping digital trends and driving rivals like Instagram Reels and YouTube Shorts to replicate its short-form video format.

Yet the $14 billion price implies a price-to-sales ratio of just 1.4, comparable to mature industrial companies such as Exxon Mobil or General Mills, rather than high-growth tech peers. By contrast, Meta Platforms trades at about 10 times sales, while Alphabet commands around eight. “The suggested value looks like daylight robbery,” said Vey-Sern Ling, senior equity adviser for Asia technology at Union Bancaire Privée.

The forced sale is part of President Trump’s push to address U.S. national security concerns over TikTok’s Chinese ownership. Under the proposed plan, TikTok’s US unit would be spun off into a joint venture, with ByteDance retaining less than a 20% stake. The deal must be finalized within 120 days, but Beijing has not publicly confirmed whether it supports the transaction, despite Trump’s claim that Chinese President Xi Jinping has given his blessing.

For ByteDance, the negotiations are fraught. “It’s like you’re putting a gun to ByteDance and saying ‘sell or you stop,’” said Alvin Foo, a venture partner at Zero2Launch. Questions also remain about who would ultimately manage TikTok U.S., given that the frontrunners — Oracle and Silver Lake — lack experience operating consumer internet platforms.

With tensions high and valuations in dispute, the future of TikTok’s American business remains deeply uncertain.