- ByteDance, the parent company of internet sensation TikTok, has reportedly surpassed a $US100 billion valuation.
- Confidential sources told Bloomberg value of start-up has risen from $US75 billion to over $US100 billion over two years.
- TikTok attracted more than 315 million new users in the first three months of 2020, according to analytics firm Sensor Tower.
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ByteDance, the Chinese company behind TikTok, is now worth more than $US100 billion, according to a report from Bloomberg Wednesday.
Sources close to the matter who were not authorised to speak told Bloomberg that the value of the start-up has risen by more than a third from around $US75 billion two years ago.
ByteDance’s was reportedly in the very initial stages of considering an IPO abroad last year. But sources told Bloomberg that a float will depend on whether ByteDance remains well-funded.
One person said the Chinese company is worth more than $US14o billion.
ByteDance rose to prominence through its app TikTok and the Chinese equivalent, Douyin. TikTok has exploded globally, and is particularly popular among teenagers.
ByteDance did not immediately respond to a request for comment from Markets Insider on its apparent valuation.
TikTok, notorious for its viral short-form videos its users create has seen a massive boost in popularity in recent months, helped by coronavirus lockdowns forcing us to spend more time on our phones.
Users have filled TikTok with light-hearted content providing an alternative to coronavirus-related news, including doctors taking dance breaks, people sharing DIY fashion and home renovation projects, and quarantined familiesmaking creative uses of their time at home together.
TikTok reportedly attracted 315 million new downloads in the first quarter and has surpassed over 2 billion downloads on mobile devices globally, according to analytics firm Sensor Tower.
Both TikTok and its parent company ByteDance have roots in China. This has made the firm subject to scrutiny from US lawmakers who have major concerns over the risks it poses to cybersecurity and user privacy, as well as its influence over censoring content.
TikTok has been on the hunt for a US-based CEO who will work alongside the company’s China CEO, as the firm takes steps to eradicate concerns that its Chinese ties pose threats to user censorship and national security.
Last week Walt Disney’s top streaming executive Kevin Mayer was chosen to be US-based chief executive of TikTok and chief operating officer of ByteDance. Mayer will become the CEO of TikTok starting June 1.