Analysts Slam Trump's $14B TikTok Price Tag, Calling It "The Most Undervalued Tech Deal of the Decade"

The Trump administration has completed a contentious agreement to hand over TikTok’s U.S. business to a group of American investors, assigning the company a $14 billion valuation—a number that has been met with considerable doubt from market observers. Vice President JD Vance, referencing this valuation during the announcement, presented the deal as a solution to ongoing geopolitical disputes over data privacy linked to TikTok’s Chinese owner, ByteDance. The arrangement, authorized through an executive order by President Donald Trump, requires ByteDance to reduce its ownership in the new American company to below 20%, with the rest of the shares distributed among investors such as

, Silver Lake, and Abu Dhabi’s MGX. Oracle will be responsible for security, reworking the app’s algorithm, and handling user information, while the board will consist of six members chosen by the U.S. and one representative from ByteDance.

The $14 billion price tag has faced strong backlash from industry professionals, who believe it greatly undervalues TikTok’s American business. Experts point out that with 170 million U.S. users and yearly revenue topping $10 billion, TikTok should be valued at a price-to-sales ratio similar to Meta (10x) or Alphabet (8x), not the 1.4x implied by the deal. Ashwin Binwani of Alpha Binwani Capital called it “the most underpriced tech buyout of the decade,” while Jefferies analyst Brent Thill said it “makes no sense,” drawing comparisons to Snap Inc., which has a $14 billion market cap despite ongoing struggles to monetize its user base.

The agreement includes a license for TikTok’s algorithm, which Oracle will retrain using data from U.S. users. White House officials have stressed that ByteDance will not have access to American user data or control over the algorithm, though some lawmakers remain skeptical about possible Chinese influence. Republican Representative John Moolenaar voiced concerns that the licensing deal could allow ByteDance to continue collaborating, potentially violating the original law. According to White House Press Secretary Karoline Leavitt, the new company will also maintain global content access for U.S. users, but details on how the platform will differ from its current form are still unclear.

Investor sentiment is divided. While Oracle and Silver Lake stand to gain from the low valuation, ByteDance and its investors—including General Atlantic and Sequoia—may see the deal as a strategic error. The transaction must close by December 16, pending approval from Chinese authorities. Analysts also noted the political motivations behind the agreement, observing that Trump’s move to extend deadlines and emphasize American ownership is part of a broader push to limit Chinese involvement in U.S. technology.

The future impact on TikTok’s U.S. business is still unknown. Although the deal offers temporary certainty, doubts remain about whether TikTok can rival Meta and Alphabet in advertising and e-commerce. The fate of TikTok Shop and the platform’s influence on culture will depend on its ability to innovate and attract advertisers. Analysts like Thill believe that resolving regulatory issues could make TikTok more attractive to brands, but the platform’s ongoing success will rely on its ability to maintain global reach and keep users engaged.

Source: [1] Here’s what’s happening right now with the US TikTok deal

[2] TikTok’s $14 billion price tag in Trump deal stuns investors

[3] Trump approves TikTok deal through executive order at $14 billion …

[4] Trump’s TikTok Deal With China: What’s the Valuation? How Is …

[5] Why TikTok US being valued at $14 billion makes ‘zero sense’

[6] Trump signs order paving way for TikTok deal to avoid U.S. ban

[7] JD Vance values TikTok the same as Snapchat's parent, and