Tiger Global Management has built up a stake in TikTok-owner ByteDance, FT reports
- ByteDance has reached an implied valuation of between US$90 billion and US$100 billion in the secondary market, the FT reported
- ByteDance is facing a US national security inquiry into TikTok's handling of user data amid increased scrutiny of Chinese tech firms by Washington
Tiger Global Management has built up a stake in TikTok owner Bytedance, providing capital support to the Beijing-based company amid ongoing scrutiny from Washington over data privacy and censorship issues, the Financial Times reported on Monday.
In a letter to investors this week, the New York-based investment group said it has “purchased shares over the past 21 months at a low multiple of future free cash flow”, without disclosing the size of investment, according to the report. ByteDance has reached an implied valuation of between US$90 billion and US$100 billion in the secondary market, the FT reported, citing several people familiar with the transactions.
ByteDance declined to comment on the new funding when reached on Tuesday. Tiger Global Management did not immediately respond to a phone call requesting comment.
ByteDance is facing a US national security inquiry into TikTok's handling of user data amid increased scrutiny of Chinese tech firms as tensions rise between the US and China over trade, national security and human rights issues. ByteDance’s Douyin short video platform and its overseas version TikTok were the world’s most downloaded non-game apps in February, according to Sensor Tower.
Besides short video apps, ByteDance operates news aggregator Jinri Toutiao, which has grown into a so-called super app in China, and more recently the company has been exploring the education market.