Friday, November 6, 2020

ByteDance reportedly raising $2bn at $180bn valuation | Music Ally

How much is TikTok’s parent company worth? 13 Warner Music Groups? Just over 5.3 Universal Music Groups? 3.7 Spotifys? Or perhaps just over a fifth of a Facebook? These are some sketchy sums based on a Bloomberg report that ByteDance is in talks to raise a $2bn funding round valuing the business at $180bn.

That would be a big leap from the $105bn that the company was being valued at in private trades less than six months ago, in May 2020. ByteDance’s revenues reportedly more than doubled from $7.4bn in 2018 to more than $17bn in 2019, with more recent reports suggesting the company was predicting around $28.7bn of revenues in 2020 (caveat: Covid-19 impact unknown.)

Bloomberg’s report also suggested that ByteDance may soon “start preparing some of its biggest assets including Douyin and Toutiao for an initial public offering in Hong Kong”. Douyin is the Chinese version of TikTok, while Toutiao is the news app that kicked off ByteDance’s rise to prominence in its early days. And, as has been well documented, TikTok itself (or at least a new US entity) could be on the way to an IPO itself.

Stuart Dredge


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