The investors of ByteDance have valued TikTok for $50 billion while ByteDance considers other options for the platform

ByteDance is a Beijing based company that also owns the famous social media app, TikTok. Recently, investors of ByteDance have suggested a takeover of TikTok and they have valued the platform at a whopping $50 billion.

Owing to the massive popularity of the app, investors have been talking about taking the company over for a while now. ByteDance is also facing a lot of pressure to give up claims on TikTok by investors in the US. So, now, ByteDance is under a lot of pressure, and the value that has been paced on TikTok is not something that can be easily ignored. So, as per the report by Reuters, ByteDance is considering different options for TikTok which has proved to be a ‘gold-egg laying hen’ for its parent company. It is not a hidden fact that TikTok’s huge success and massive popularity turned ByteDance into a true conglomerate and in such a short time.

ByteDance executives have been quite busy with hearing proposals from various investors, and the current offer of $50 billion is still not what they will probably agree at. As per the report, ByteDance has been suggesting higher values than $50 billion too. If a deal is not reached anytime soon and ByteDnce does not make a decision, it will have to give up on its US operations in order to regain some of their trust.

Now, this trust has come between ByteDance and its US investors on the basis of several concerns raised by the Committee of Foreign Investment in the United States (CFIUS). This committee is basically a government panel that reviews and studies the national risks in acquiring companies or making deals with foreign countries. So, this committee has raised some concerns about the personal data of users that is used by TikTok, and that eventually comes in the notice of, and under its parent company, ByteDance. Now, this is where the lack of trust comes in between the two parties, and if ByteDance does not sell TikTok to other investors than it will probably have a hard time doing business with the US.

The other investors have reportedly made different types of offers to ByteDance. Some investors have proposed to transfer majority ownership of TikTok. It seems that the investment firms and other companies that ByteDance has been communicating with have placed a very high stake on TikTok. According to this report, and if it can be trusted completely, the revenue that TikTok generates is $1 billion approximately, and the investors have valued it at $50 billion, which is 50 times its original projected revenue! This is far too much in comparison with its rival apps like Snap Inc, which is valued at $33 billion.

Let us see what decision ByteDance takes about TikTok.


Photo: Thomas Trutschel | Photothek | Getty Images

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