From Morningstar: 2025-06-18 06:00:00

TikTok’s future in the US is uncertain, facing a June 19 deadline to divest its US assets. The app’s algorithmic content recommendation is a key competitive advantage, driving user engagement and ad sales. The company’s ad revenue exceeded $12 billion in 2024, making it a top player in the social media market.

The US government mandated ByteDance to divest TikTok’s US operations due to data security concerns. A sale is expected in 2025, likely exceeding $50 billion. Potential buyers include Microsoft, Amazon, and Oracle. TikTok’s hyperpersonalized content recommendation and strong ad sales make it an attractive acquisition target.

Microsoft and Amazon are top contenders to acquire TikTok’s US operations, with Amazon recently submitting a bid. Oracle is also in the running, proposing a deal to relocate user data servers to Texas. AppLovin has proposed a merger to address security concerns. TikTok’s potential sale could impact the social media landscape.

A full ban on TikTok in the US is unlikely but would benefit competitors like YouTube and Instagram. Delay in TikTok’s sale could lead to a gradual erosion of its advertiser base and user churn. Snapchat stands to gain the most from prolonged uncertainty. The outcome of TikTok’s sale will have implications for the entire social media industry.



Read more at Morningstar: Who Will Buy TikTok? And Why it Matters