BEJING (PingWest) — Some investors seeking to take over the viral short video app TikTok which is developed by ByteDance, the world’s most valuable startups, are valuing the app at about $50 billion, much more than peers such as Snap Inc, according to Reuters, citing people familiar with the matter.
TikTok has seen an explosive growth during the COIVD-19 pandemic, but the U.S. is looking to ban it and other Chinese apps as the Committee on Foreign Investment in the United States (CFIUS) raised concerns about the safety data that TiKTok handles under its Chinese owner.
The investors’ bid values TikTok at 50 times its estimated revenue of $1 billion, according to the sources, compared to that Snap is valued at 15 times its estimated 2020 revenue, at about $33, according to Refinitiv, a global provider of financial market data and infrastructure.
Whether ByteDance’s founder, Zhang Yiming, is satisfied with the offer is unclear. ByteDance executives discussed the valuation projections for TikTok that is more than $50 billion, one of the sources told Reuters.
The short video app is considering structure changes as an effort to distance itself from China. These changes could include creating a new management board and establishing a separate headquarter for the app, but no decision has been made so far. The company has already separated TikTok in operation from other apps through dedicated teams.
TikTok CEO Kevin Mayer posted a blog Wednesday, saying that "We are willing to take all necessary steps to ensure the long-term availability and success of TikTok. The one thing that will not change is our commitment to ensuring that TikTok remains a safe and secure platform for the tens of millions of American families that derive joy from it."