ByteDance is considering a range of options for TikTok amid pressure from the US to give up the control of the app; investors value the app at $50 billion in takeover bid
The last two months have been a disaster for Chinese social video app TikTok. Last month, India government banned 59 Chinese apps accusing TikTok of engaging in activities prejudicial to sovereignty and integrity of India.
TikTok is also facing scrutiny from the U.S. government over its handling of user data and amid larger tensions between the United States and China. U.S. Secretary of State Mike Pompeo said Monday that the United States is “looking at” banning popular Chinese video app TikTok in the wake of the new law in Hong Kong.
ByteDance is considering a range of options for TikTok amid pressure from the US to give up the control of the app,
Now, some investors of TikTok’s parent company ByteDance are seeking to take over the popular social media app are valuing it at about $50 billion, according to an exclusive report from Reuters, citing people familiar with the matter. The bid values TikTok at 50 times its projected 2020 revenue of about $1 billion, according to the sources.
The decision to takeover the Beijing-based ByteDance came amid pressure from the United States to relinquish control of the app. The Committee on Foreign Investment in the United States (CFIUS), a U.S. government panel which reviews deals by foreign acquirers for potential national security risks, has raised concerns about the safety of the personal data that TikTok handles under its Chinese owner.
TikTok, a social video app which allows users to create short videos with special effects and has become wildly popular with teenagers in the US. Earlier this year, TikTok was the third most popular app among US teens.