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ByteDance Ditches IPO Plans For The Time Being: SCMP

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ByteDance Ditches IPO Plans For The Time Being: SCMP
  • TikTok and Douyin parent, ByteDance, has dismissed its initial public offering (IPO) plans, for the time being, South China Morning Post reports.
  • ByteDance reached a $400 billion valuation in the private market, almost tripling its $140 billion valuation post a March 2020 fundraising. The company deferred its IPO plan partly due to difficulties in business restructuring under the Chinese and U.S. regulations.
  • TikTok position in the U.S. remained undecided after ByteDance ditched a deal to sell TikTok’s U.S. operations to an Oracle Corp (NYSE: ORCL)-led group.
  • TikTok continues to face uncertainty under President Biden as he offers a second look at the security concerns raised by Chinese CFO apps operating in the U.S.
  • ByteDance was reportedly under initial discussions for a U.S. listing via Douyin shares.
  • Last week, Bloomberg reported the company’s IPO preparations of some of its main businesses, including Douyin, including its options between Hong Kong and the U.S.
  • Several sources reported the company’s preparations for a Hong Kong listing. However, the news was pulled subsequently.
  • Douyin reported 600 million daily active users as of August 2020. TikTok, along with 689 million global daily users, accounted for $1 billion to ByteDance’s 2020 revenue of $37 billion.
  • Chinese short video app, Kuaishou’s share price has nearly tripled on its first trading day in February. The company reached almost 1 trillion yuan in market cap as of Friday.
  • Last month, ByteDance hired former Xiaomi Corp (OTC: XIACF) (OTC: XIACY) executive Shou Zi Chew for a newly-created CFO role, insinuating towards the IPO.
 

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