12.5 C
New York
Thursday, August 6, 2020
Home News TikTok valued at $50 billion as investors eye up takeover

TikTok valued at $50 billion as investors eye up takeover

tiktok-logo2-jks.jpg

Investors of parent company ByteDance are seeking to take over the video app.

What you need to know

  • ByteDance investors are trying to take over TikTok.
  • It won’t be cheap.
  • According to reports, the video platform has been valued at a whopping $50 billion.

Investors of TikTok’s parent company, ByteDance, have reportedly valued the platform at a massive $50 billion amidst talks of a takeover.

As reported by Reuters:

Some investors of TikTok’s parent company ByteDance seeking to take over the popular social media app are valuing it at about $50 billion, significantly more than peers such as Snap Inc (SNAP.N), according to people familiar with the matter.

ByteDance is said to be “considering a range of options” for TikTok following pressure to give up control of the app:

Beijing-based ByteDance is considering a range of options for TikTok amid pressure from the United States to relinquish control of the app, which allows users to create short videos with special effects and has become wildly popular with U.S. teenagers. The app’s success has helped turn ByteDance into one of only a handful truly global Chinese conglomerates.

The Committee on Foreign Investment in the United States (CFIUS), a U.S. government panel which reviews deals by foreign acquirers for potential national security risks, has raised concerns about the safety of the personal data that TikTok handles under its Chinese owner, Reuters has previously reported.

According to the report, privately, several ByteDance investors have made a proposal to transfer majority ownership of TikTok, but the investors aren’t the only ones interested, as ByteDance is said to have heard proposals from other companies and investment firms too. If the report is correct, investors value TikTok at a massive $50 billion, 50 times its $1 billion projected revenue for 2020. To put that into perspective, rival Snap is valued at 15 times its 2020 projected revenue at $33 billion.

The offer may not even be enough, as ByteDance executives have reportedly thrown around valuations even higher than $50 billion. One source said that if a deal can’t be reached, ByteDance will look to divest its US operations to try and restore some trust with the U.S.

You can read the full report here.

Latest

All the critters you’ll face in Grounded and how best to beat them up

Here's how to find the game's more elusive critters and how best to get revenge on those terrifying spiders.

Samsung says the new Galaxy Z Fold 2 addresses reliability issues. Here’s how

A new hinge, ultrathin glass, and some vacuum cleaner parts make the Galaxy Z Fold 2 a more durable device.

Samsung’s 5nm troubles have reportedly cost it Qualcomm’s business

The company's troubles with moving to a 5nm process may be to blame.What you need to knowA rumor from earlier

Keep your Note 10 protected and thin with these great cases

Even though it was released a year ago, the Galaxy Note 10 is still a great Android phone with a