Exclusive | ByteDance’s private valuation falls by US$100 billion in one year as IPO plans remain up in the air
- A deal in April values the TikTok owner at about US$300 billion, a quarter less than last year, but still puts it among the biggest Chinese tech firms
- ByteDance says it has no plans for an IPO, but a recent reshuffling of business entities sparked speculation that Douyin could be floated in Hong Kong
The current valuation is on par with sales offers of ByteDance stakes published on Chinese tech media platform 36Kr. One stake posted to the site on June 1 values the company US$320 billion, but it mentions that the price is “negotiable”. That deal was already US$30 billion lower than the valuation given in an offer posted in February. The tips published by 36Kr do not disclose information about potential buyers or sellers.
Another unpublicised sale offer earlier this year valued ByteDance at US$280 billion, according to an investor who did not take the deal.
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Since being founded in a Beijing residential flat by entrepreneur Zhang Yiming a decade ago, ByteDance has grown at an astonishing pace only recently hampered by China’s crackdown on Big Tech last year.
Some of ByteDance’s long-term investors, mainly venture capital funds, have been trying to cash out. Tiger Global Management, which has held equity in the company since 2018, estimated the company’s valuation at less than US$300 billion. Sequoia China, which invested in ByteDance as early as 2014, has denied a Monday report from The Wall Street Journal that it valued the company at just US$180 billion.
A Sequoia China representative declined to comment on ByteDance’s current valuation. ByteDance and Tiger Global did not respond to requests for comment on Wednesday.
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A month earlier, ByteDance hired another CFO, veteran corporate lawyer Julie Gao, who has advised many Chinese technology companies on public listings and other transactions.
The company last month also renamed several Hong Kong-registered entities, including one for “Douyin”, renewing speculation about whether the Chinese short video business will be floated on the city’s bourse.