ByteDance Ltd’s income greater than doubled to about $35 billion final yr, defying heightened world competitors and Trump’s try and ban its signature video service TikTok within the US.
The Chinese language firm managed to develop working revenue to roughly $7 billion in 2020 from lower than $4 billion the prior yr, an individual aware of the matter mentioned. That’s in a yr when former US president Donald Trump sought to ban TikTok and pressure its sale to American buyers led by Oracle Corp. With Joe Biden in workplace, the corporate is shifting nearer towards itemizing a part of its social media empire in Hong Kong. The Info first reported on ByteDance’s 2020 financials.
ByteDance’s phenomenal development stems from the worldwide success of youth phenom TikTok and its Chinese language twin Douyin, which helped pioneer a brand new type of social video and undercut rivals from Facebook Inc to Tencent Holdings Ltd. Final valued at about $180 billion, the corporate is alleged to be exploring an preliminary public providing for a few of its companies in Hong Kong, together with Douyin. A ByteDance spokesperson declined to remark.
An eventual IPO would comply with smaller competitor Kuaishou Expertise’s impending $5.4 billion debut. Kuaishou, which operates China’s hottest video service after Douyin, is slated to record Feb. 5 on the earth’s largest web IPO since Uber Applied sciences Inc.
However one main uncertainty stays for ByteDance: whether or not the Biden administration will comply with via on its predecessors’ actions.
Based by Zhang Yiming in 2012, ByteDance constructed TikTok into one of the crucial fashionable apps all over the world, with greater than 100 million customers within the U.S. alone. The startup has greater than quadrupled income from simply $8 billion in 2018 and now posts gross sales on par with the likes of Nike Inc. and Coca-Cola Co.
However the Trump administration labeled the app a safety menace and banned the service final yr, contending the Chinese language authorities may compel ByteDance to show over the info of hundreds of thousands of younger American customers. Oracle and Walmart Inc. then agreed to purchase 20% of TikTok in a fancy deal blessed by the previous president.
Biden’s speedy priorities are curbing the pandemic and resuscitating the economic system, and he has had little to say thus far about TikTok. It’s potential ByteDance may work out a compromise with the brand new president that permits it to retain full or majority possession — supplied it might probably display American consumer knowledge is safe.
Because the TikTok saga raged, Zhang has put extra effort into nascent Chinese language-focused companies from gaming and schooling to e-commerce, whereas fine-tuning ByteDance’s administration construction, the individual mentioned, asking to not be recognized discussing inside issues.
Throughout a December city corridor assembly attended by ByteDance’s 100,000-plus staff, Zhang mentioned TikTok’s consumer development slowed in 2020’s second half due to new competitors from Youtube and Snap Inc., in accordance with attendees who requested not be recognized discussing non-public occasions. However he emphasised that its development potential nonetheless outstripped Douyin’s, they mentioned.