TikTok’s Revenue Hits $16 bn in the U.S. Amid Possibility of a Ban

TikTok, the popular video-sharing platform, which is facing the possibility of a ban, has generated sales of $16 billion in the United States, according to a report by the Financial Times.

TikTok customers on smartphone
@Freepik

China’s ByteDance owns TikTok.

ByteDance’s overall revenue for 2023 reached $120 billion, marking a remarkable 40 percent increase from the previous year. This surge was primarily propelled by TikTok’s exponential growth, although a significant portion of the company’s sales still originates from its home market in China.

In the United States alone, where approximately 170 million users are active on the platform, TikTok witnessed unprecedented sales figures in 2023, setting new records for the company. The platform’s meteoric rise has even positioned ByteDance on course to surpass Meta Platforms, the parent company of Facebook, as the world’s largest social media entity by revenue.

Meta Platforms, despite reporting a notable 16 percent revenue increase to $134.90 billion in 2023, faces stiff competition from TikTok’s rapid ascent.

ByteDance, often dubbed the App Factory due to its frequent rollout of mobile applications, refrained from immediate comments when approached by Reuters for a response.

The regulatory landscape in the United States presents a challenge for TikTok’s future prospects. The U.S. House of Representatives recently passed a bill with overwhelming support, proposing a six-month timeline for ByteDance to divest its TikTok assets in the country. Failure to comply could result in a ban on the platform.

Despite these hurdles, TikTok continues to dominate the social media landscape, emerging as the most downloaded app in the United States in 2023 with 47 million downloads. Trailing behind are Facebook and Instagram, with 35 million and 34 million downloads, respectively, as reported by market intelligence firm Sensor Tower.