TikTok may be sold soon. Here’s what it costs and who can buy it.

TikTok could be under new ownership by this time next year after President Joe Biden announced on Wednesday signed a bill That gives the social media company about 12 months to divest from its Chinese owners or face US sanctions.

TikTok CEO Shou Chou said in a statement that he vowed to fight the new law in court. The video “Facts and the Constitution are on our side,” the department posted yesterday. He added that TikTok hopes to “win again,” referring to Montana’s efforts to ban the app. forbidden by a federal judge.

That being said, considering TikTok’s social media service users, it could attract the attention of many suitors. Six in 10 Americans are under the age of 30. Its algorithm delivers a continuously scrolling stream of videos linked to users’ personal interests and habits, creating an addictive stream of videos that keeps them hooked to the app.

Wedbush Securities analyst Dan Ives told CBS MoneyWatch that as long as TikTok sells its “golden gem algorithm,” it could be too valuable to many suitors.

“We estimate that TikTok is worth $100 billion,” he said, using algorithms.

But Ives added that TikTok’s owners could take away the proprietary technology in a sale, making it significantly less valuable to potential buyers.

Here’s what to know.

Who owns TikTok now?

TikTok has more than 170 million US users and is a subsidiary of Chinese tech company ByteDance, which is why US lawmakers have called the company “Chinese-owned”.

But ByteDance’s structure is complicated, the AP reports that the company is headquartered in Beijing but registered in the Cayman Islands.

As far as TikTok is concerned, the contention that it is owned by a Chinese company is completely fictitious. The video platform said in a 2023 post on its website that ByteDance is 60% owned by global institutional investors, including Susquehanna International Group, Carlyle Group and General Atlantic. Another 20% of the shares are held by ByteDance employees, with the remaining 20% ​​held by the founder, Chinese entrepreneur Zhang Yiming, the company said.

How much will TikTok be worth in 2024?

Wedbush Securities analyst Dan Ives said TikTok could be worth $100 billion.

But this assessment is based on TikTok’s algorithm, the logic written into the software that determines which videos to continuously serve users. Without the algorithm, Ives said, the company would likely sell at a much lower price.

“We believe China and ByteDance will never sell any products with the Gemstone algorithm Without the algorithm, we believe TikTok would be worth $30 billion to $40 billion,” he told CBS MoneyWatch.

Who can buy TikTok?

Ives said Microsoft, Oracle and Walmart were potential suitors. But he added that other companies and investors may express interest.

“After this deal, private equity firms and (former Treasury Secretary Steven) Mnuchin and others will come in droves,” Ives said.

Mnuchin said last month, CNBC reported that he was forming a coalition of investors to acquire TikTok in anticipation of an investment or ban bill becoming law. Mnuchin told CNBC: “It’s a great business and I’m going to put together a team to acquire TikTok.”

How likely is TikTok to sell?

It’s hard to say, but Ives said he believes there’s a 75% chance TikTok will find new ownership by early 2025.

TikTok, meanwhile, previously successfully blocked a ban through legal action with a federal judge rule Late last year, Montana tried to ban the service for “exceeding state authority and violating the constitutional rights of users and businesses.”