TikTok's parent company ByteDance now worth over US$100 billion

ST Staff
Thursday, 21 May 2020

A Bloomberg report claims that the value of ByteDance has risen to more than 33% in the past two years

According to a report by Bloomberg, ByteDance, the Chinese company behind the internet sensation TikTok, surpassed more than US$100 billion in recent private share transactions.

Close sources who did not wish to be named also claimed that the start-up has risen by more than a third, and it used to be US$75 billion two years ago.

Considered as the world's most valuable start-up, its value today has risen more than 33% after a major round of funding that was allotted to it two years ago.

ByteDance, which was reportedly in the early stages of considering an IPO abroad, has now pushed the matter to see if it remains well-funded.

It gained popularity for its app TikTok, and its Chinese variant Douyin, and is today widely used by millennials around the world.

TikTok underwent a massive boost after a majority of its users began using it during the nationwide lockdown.

Both ByteDance and TikTok have their headquarters in China, and this has also made firm subject to scrutiny from US lawmakers who have major concerns over its privacy and cybersecurity matters.

In India, TikTok was currently caught in a controversy, which caused netizens to demand a ban and ended up bringing down it's rating on Google's Play Store from 4.6 stars to 2. The controversy involving Faizal Siddiqui, who boasted of over 12 million followers, unfolded after he was accused of propagating violence against women.

TikTok has recently appointed Kevin Mayer, head of the Walt Disney's direct-to-consumer and international business to become CEO of TikTok, as well as COO of ByteDance. 

It was also reportedly brought about to eradicate concerns over the claims of Chinese ties posing a threat to national security.

ByteDance is looking to expand its operations across other arenas, including gaming as well as e-commerce. Investors are also rushing in to have a bite of what is considered as the world's most valuable start-up based on the fact that it draws 1.5 billion monthly active users to a family of apps ByteDance owns.

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