TikTok mum or dad tops $250-billion valuation – greater than Exxon Mobil
ByteDance stocks, The Chinese parent company of the successful video app TikTok is trading in the secondary market with a valuation of more than 250 billion US dollars (3.7 trillion rand), according to those familiar with the matter.
The Beijing-based company’s value has risen in recent weeks as investors gain confidence in the business and founder Zhang Yiming weighs options to go public, people said, asking not to be named because the deals are private. ByteDance was valued at $ 140 billion at its last fundraiser, according to CB Insights.
The company’s shares were trading around $ 200 billion in private deals just a month ago, one respondent said. At $ 250 billion, ByteDance would be more valuable than Exxon Mobil or Coca-Cola.
Zhang has just hired Xiaomi’s Chew Shou Zi as his chief financial officer, fueling speculation about the social media giant’s plans to go public
A company representative did not respond to requests for comment.
Zhang, who founded ByteDance in 2012, has demonstrated a rare ability to create repeated hit services in competition with giants like Tencent Holdings and Alibaba Group. His first major success was the Toutiao news service, which has since been dwarfed by TikTok and Douyin, a dual video app for China’s domestic market. The company’s sales more than doubled to around $ 35 billion last year.
ByteDance got embroiled in the administration of former US President Donald Trump, which promised to force the Chinese company to sell TikTok over alleged national security concerns. However, the Biden administration has announced that it will reassess the situation and open the door to ByteDance to keep part or all of the fast growing business.
initial public offering
Zhang has just hired Xiaomi’s Chew Shou Zi as his chief financial officer, fueling speculation about the social media giant’s plans to go public. Chew oversaw Xiaomi’s IPO as chief financial officer more than two years ago, and gave ByteDance a seasoned CFO to help reassure investors. Before leaving, Chew had overseen the international expansion of Xiaomi’s smartphone.
ByteDance had been considering plans to list some of its companies, including Douyin in Hong Kong, Bloomberg News reported in November. But it is becoming more and more likely that Zhang will take his entire company public, one respondent said.
ByteDance’s smaller rival, Kuaishou Technology, went public in Hong Kong in February to increase investor demand. The stock more than doubled from its IPO, and its valuation rose to over $ 140 billion. That feat could lead to a re-evaluation of TikTok’s parent company. Some investors recently called for the equivalent of $ 350 billion to sell their shares.
ByteDance continues to face regulatory uncertainties. In addition to the unresolved efforts of the U.S. government to force a potential TikTok sale, Beijing regulators have made far-reaching efforts to crack down on the country’s powerful tech giants.
President Xi Jinping warned in March that the government would pursue so-called “platform” companies that have amassed data and market power. Beijing is considering creating a government-backed unit to oversee the lucrative data tech companies collect from customers, people familiar with the matter have said. – Reported by Lulu Yilun Chen, Coco Liu and Zheping Huang, (c) 2021 Bloomberg LP