TikTok ByteDance (ISIN: NET000BYT111)

 

Handelsblatt...

TikTok, which is valued at around $220 billion as of 2024, is reportedly considering an Initial Public Offering (IPO). However, the timing is still uncertain due to ongoing economic volatility and geopolitical challenges, particularly in the United States. An IPO could provide vital financial resources for ByteDance, TikTok's parent company, allowing for additional investments in technology, user base growth, and innovative features that could reshape social media.

The potential IPO is complicated by regulatory scrutiny in the US, where concerns over national security have led to discussions about banning TikTok unless it separates from ByteDance. This uncertainty is reflected in ByteDance’s fluctuating valuation, with recent private market transactions valuing the company between $220 billion and $300 billion, a notable drop from its $460 billion peak in 2021.

 

Boerse.de...

In 2023, ByteDance’s earnings surged 60% to over $40 billion, surpassing Chinese giants like Tencent and Alibaba. Despite this growth, ByteDance's valuation has dropped from a peak of $460 billion in 2021 (per Tiger Global report) to recent estimates between $220 billion and $300 billion, reflecting concerns over TikTok’s US operations.

Mitchell Green, an investor in ByteDance and founding partner at Lead Edge Capital, provided key insights in a recent interview. A few years ago, ByteDance was valued at $200 billion while Meta stood at $300 billion. Now, Meta’s valuation is $1.3 trillion, while ByteDance is around $240 billion. Despite this gap, ByteDance is growing three times faster than Meta.

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IT-TIMES...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Who Owns TikTok?

TikTok is owned by ByteDance, a Beijing-based tech conglomerate founded in 2012 by Zhang Yiming and colleagues. Since its international launch in 2017, TikTok has grown into one of the world’s leading social media platforms, although ByteDance’s ownership has drawn investigation, particularly from US regulators over data privacy concerns.

After launching Douyin to great success in China, ByteDance brought TikTok to the global market in 2017. The app has since grown in popularity as a platform for sharing short-form videos, enthralling users worldwide. As ByteDance faces regulatory and operational challenges, its ownership of TikTok is both a triumph and a responsibility, necessitating constant innovation and vigilance.

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TikTok Stock Price

Estimating TikTok's stock price ahead of its potential IPO remains challenging due to the absence of a confirmed IPO date and the ongoing fluctuations in ByteDance's valuation. Recently, ByteDance initiated a stock buyback program, offering $160 per share, which values the company at approximately $268 billion.

Mitchell Green also noted that if TikTok’s US operations were divested due to legal pressures, major US companies might show strong interest, potentially driving up the stock price during the IPO. ByteDance's decision to repurchase shares may provide liquidity for early investors and employees, signaling the company’s efforts to stabilize its valuation amidst these uncertainties.

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Bottom Line

TikTok's potential IPO remains a subject of interest, driven by ByteDance's need for financial resources to expand and innovate. However, the IPO’s timing and success are uncertain due to fluctuating valuations and intense regulatory scrutiny in the US. As ByteDance navigates these challenges, the outcome will likely have substantial implications for its global strategy and TikTok's future as a leader in social media.