Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

ByteDance valuation reaches US$400 billion in anonymous online trades

ByteDance valuation reaches US$400 billion in anonymous online trades

Anonymous sellers trading on 36Kr have valued ByteDance by as much as US$450 billion this year, while the company’s current buy-back scheme values the TikTok owner at just US$200 billion.

TikTok owner ByteDance has seen a moderate rise in its valuation in recent months, according to anonymous private equity trades posted online, which comes after the company shelved plans for an initial public offering and founder Zhang Yiming announced that he would step down as CEO earlier this year.

Despite the threat of a ban in the US under the administration of former president Donald Trump, TikTok has continued to see strong overseas expansion, with more than 1 billion monthly active users as of September. As a result, Beijing-based ByteDance has remained one of China’s most valuable unicorns since ruling out any immediate listing plans in April.

New estimates of ByteDance’s valuation come from Chinese tech media platform 36Kr, which publishes buy and sell requests from anonymous investors and facilitates the trades. Equity stakes in ByteDance have been the most active targets on the platform.

ByteDance CEO Zhang Yiming attends the 5th World Internet Conference in Wuzhen, Zhejiang province, on November 7, 2018. The founder’s announcement that he would step down from leading the company this year has come amid heightened scrutiny from Beijing of the country’s biggest tech firms.


In the latest post on Wednesday, two unnamed shareholders said they intended to sell up to US$1.1 billion worth of ByteDance shares, valuing the company at US$400 billion, a US$40 billion premium over a valuation from the same sellers last month. The investors said the valuation is valid until Friday, and “the price is expected to be even higher in the future”.

Since the sources are anonymous, without any contact information listed on the platform, the South China Morning Post was unable to confirm the authenticity of the information. 36Kr did not respond to a request for comment.

Other published ByteDance trades from multiple investors show a relatively active private market for stakes in the company, and it has been going on for months. Differences in valuations with each trade can vary by tens of billions of dollars. One seller valued the company at US$450 billion in July, and the lowest asking price valued it at US$325 billion in early September. It is not clear whether any of the listed sales have actually been realised.

The tech giant has also recently initiated a new round of internal buy-backs for shares owned by employees, at US$132 per share, according to three sources familiar with the matter. It marks a 5 per cent gain over its previous buy-back round in May, but it values the company at just US$200 billion, much lower than the private trades listed on 36Kr.

Back in April, just weeks before the company said it had no immediate plans to go public, sources confirmed to the Post that ByteDance was approaching a US$400 billion valuation for external investors.

ByteDance’s IPO plans remain up in the air after China made significant changes to regulations concerning overseas listings. Following a cybersecurity probe
into ride-hailing firm Didi Chuxing, launched days after the company went public in New York, Beijing introduced a draft regulation that would require any platform operator with at least 1 million users to apply for such a review before listing overseas.

ByteDance’s short video app Douyin, the Chinese version of TikTok, alone had 600 million daily active users as of August last year, the latest official numbers available. Before denying it had IPO plans, ByteDance explored options for listing Douyin in New York, a move that looks even more unlikely under the current regulatory environment.

Following an August report by the Financial Times that the company was looking to list in Hong Kong by early next year, ByteDance again denied that it had plans for an IPO.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×