Sunday, May 19, 2024

TikTok’s parent company is near to raise $2 Billion before its IPO

 

TikTok, a social media app, is truly a sensation for all where the TikTokers enjoys quality time with entertainment. There has certainly no shortage of opinions about TikTok since the infamous PTA ban.

However, its rise in dramatic popularity is best defined by the fact that it is the most downloaded social media app in the third quarter of the year 2020. The patent company named ByteDance is just about to reap the rewards of this massive popularity. And before the highly-anticipated IPO that is in Hong Kong, the company is reported to raise as $2 Billion.

Bloomberg report that ByteDance is expected soon to hold an initial public offering of a very significant chunk of the side of its international business in the Stock Exchange of Hong Kong. And before that, it is looking forward to a rise not-so-modest like a sum of $2 billion. However, the financing is expected to raise the Chinese tech giant, with the valuation to $180 billion.

The ByteDance has been planning its public offering of the largest Asian assets like Douyin and Toutiao for a while now. And the two assets that drive an important portion of the company’s revenues. The company generated a value of $17.2 billion in revenue as per last year by the ads on the Douyin accounting for a total of 67% of that.

Douyin and Toutiao are defined here as the Douyin is basically TikTok, but for the Chinese public only. And Toutiao is just nothing more than a platform of news and information. These apps get an incredible amount of engagement as these social media services targeted at the Chinese population.

The Sequoia Capital is also reportedly going to be the financing of this new investment. Interestingly, Sequoia happens to make significant ties with US President as the Republican mega-donor Doug Leone that is a managing partner of the investment firm.

ByteDance position is currently standing as the most valuable privately-held firm venture-backed tech company in the world. But now it is gearing up for what could be a very interesting part of IPO indeed.

Syed Ali Abbas
Syed Ali Abbashttps://startuppakistan.com.pk
General Manager at Startup Pakistan

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