ByteDance in Fundraising Talks That Will Value It at $180 Billion

November 5, 2020 11:46 pm

Beijing (PingWest)—ByteDance, parent of TikTok, is in early talks to raise a new round of financing that will value it at $180 billion after the investment, Reuters reported, citing two people familiar with the matter.

The company is discussing the round with existing investors, including Sequoia Capital and General Atlantic, to raise around $2 billion for the company, the report said.

Citing one source, the report said that this is not a pre-IPO round, because ByteDance has not yet decided whether to list Douyin, the Chinese version of TikTok, independently, or list some of its Chinese businesses, including Douyin and news aggregator Jinri Toutiao, as a package in Hong Kong or Shanghai.

ByteDance's last round of financing can be traced back to 2018. After the investment, the company's valuation reached $78 billion. Earlier this year, the social media unicorn was valued at $140 billion in the secondary private equity market.

The Trump administration has contended TikTok poses national security concerns as American's personal data who use the app could be obtained by China's government. The US president issued an order on August 14th, giving ByteDance 90 days to either sell or spin off its TikTok business in the US. That order is set to go into effect on November 12th and would effectively halt the app's operations.

The Beijing-headquartered company is in talks with Wal-Mart and Oracle to establish a new company for TikTok's US business.

According to Reuters, ByteDance is currently settling details in areas like personnel, such as which staff members will join the new TikTok entity.