ByteDance has grown at an astonishing pace recently hampered by China’s crackdown on Big Tech last year since it was founded in a residential area in Beijing by entrepreneur Zhang Yiming 10 years ago.
The company, which also runs Douyin, the Chinese version of TikTok, had rivals last year. Kuaishou Technology Published in Hong Kong. ByteDance’s personal valuation rose with rival stocks shortly after the initial public offering and before the Beijing crackdown began. Weigh heavily on the market.. Kuaishou has lost about 80 percent of its value since its peak in February 2021.
Rumors are swirling about ByteDance’s IPO program. Source said earlier Position It was postponed due to new regulations. The company issued a statement in April 2021 that it has no plans to go public.
Some of ByteDance’s long-term investors, primarily venture capital funds, are trying to cash out. Tiger Global Management, which has held shares in the company since 2018, estimates the company’s valuation to be less than US $ 300 billion. Sequoia China, which invested in ByteDance as early as 2014, rejected Monday’s report. The Wall Street Journal The company was worth only US $ 180 billion.
A representative from Sequoia China declined to comment on ByteDance’s current assessment. ByteDance and Tiger Global did not respond to requests for comment on Wednesday.
Like many Chinese tech companies, ByteDance’s profit growth outlook in the domestic market is clouded by tighter regulations. The central government has become more entrenched in the regulation of short video content.new Law governing the use of recommendation algorithms It came into effect in March.
ByteDance is also facing intensifying competition, especially with Tencent, which has introduced a new short video service for its ubiquitous messaging app. WeChat..
However, TikTok is very popular abroad, with Douyin having 600 million daily active users, compared to 1 billion users worldwide.The popularity of the Chinese app has led to political scrutiny even in countries like India where it was. Banned from 2020And the United States.
Former Chief Financial Officer (CFO) in a major corporate remodeling in November 2021 Chew Shou ZiWho helped the pavement before Xiaomi CorpThe road to an IPO resigned from that role and focused on his work as CEO of TikTok.
A month ago, ByteDance hired another CFO, Julie Gao, a veteran legal counsel. He has advised many Chinese tech companies on listings and other transactions.
Last month, the company renamed several Hong Kong registered entities, including “Douyin,” updating speculation about whether China’s short video business would be listed on the city’s stock exchange.