America is TikTok’s largest market and a major growth driver. The U.S. company launched an e-commerce service in September and aims to reach $17.5 billion in business transactions this year, people familiar with the matter said.
TikTok for Usa
TikTok’s U.S. business is hitting ad sales goals, but user growth is stalling, the Journal reported last month. The average U.S. monthly user age 18 to 24 fell nearly 9% from 2022 to 2023, according to mobile analytics firm Data.ai. Sensor Tower, an analytics firm, estimates that daily time spent on Instagram has grown 10% over the past year, compared to 1% growth on TikTok, even though TikTok still dominates social media platforms in terms of total time spent on apps.
It is also unclear whether TikTok is profitable. In a March 2023 interview, TikTok CEO Shou Zi Chew said the company is not yet profitable because it is spending billions of dollars to try to separate its U.S. and European businesses from China , in an effort to appease politicians and regulators concerned regarding the app’s ties to Beijing.
Selling the U.S. assets alone would allow ByteDance to keep most of TikTok, but Chew said doing so might “destroy” the app. Part of the appeal of TikTok, he said, is that people outside the United States can experience America. “An American user can go viral in France, for example,” he said. “If there were two companies, one for the United States and one for the rest of the world, you might think regarding how to interoperate. How to do?”.
Another issue that might reduce TikTok’s selling price is control of the application’s algorithm, which is the system that personalizes the videos viewed by users. China said last year that the sale of TikTok would be subject to government approval, as the algorithm falls under China’s export control rules.
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2024-04-26 03:55:34
