TikTok parent company valued at over $110B
TikTok — the social-media app popular with teens and at odds
with lawmakers — is fast becoming a hit with investors.
Private shares of TikTok parent company ByteDance Ltd. have
been trading hands at prices that value the Chinese company at over $100
billion, The Post has learned.
“We are seeing buyers willing to pay at a $110 billion
valuation or higher,” one private-placement agent told The Post.
The comments echo a Bloomberg News report, also from
Wednesday, that said ByteDance shares having been selling on the secondary
market at prices that value it at between $105 billion and $110 billion, with
one trade that pegged it as high as $140 billion.
That makes ByteDance five times bigger than its publicly
traded peers like Snap, valued at $26 billion, and Twitter, at $25 billion.
Watchers say ByteDance’s sudden ascension suggests investors
expect something to happen that could make the company more valuable, including
a new fundraising round.
“Usually when you see this, it means something bigger is
coming,” the private-placement agent said.
One Wall Street source said he expects ByteDance to launch a
new financing round and a parallel loan package at a $125 billion valuation.
ByteDance will choose whether to raise equity or debt after it determines which
is the more profitable path, the source said.
The surge comes despite warnings by lawmakers like Sen.
Chuck Schumer (D-NY) that the app popular for its quirky viral videos poses a
security threat due to its China ties. Numerous US government agencies,
including the Army and Transportation Security Administration, have stopped
using the app for official business, including recruiting.
“TikTok is not as innocent as it sounds,” Schumer said at a
press conference in February. “If you go on TikTok, the Chinese government has
your data. You have no recourse.”
That hasn’t stopped TikTok from a spate of high-profile job
recruiting, including when it tapped Disney’s streaming head Kevin Mayer to be
TikTok’s new chief executive this week.
In January, ByteDance appointed ex-Microsoft lawyer Erich
Andersen to be its global general counsel.
A TikTok spokesman did not return calls seeking comment.
Comments
Post a Comment