What you need to know
- ByteDance investors are trying to take over TikTok.
- It won't be cheap.
- According to reports, the video platform has been valued at a whopping $50 billion.
Investors of TikTok's parent company, ByteDance, have reportedly valued the platform at a massive $50 billion amidst talks of a takeover.
ByteDance is said to be "considering a range of options" for TikTok following pressure to give up control of the app:
According to the report, privately, several ByteDance investors have made a proposal to transfer majority ownership of TikTok, but the investors aren't the only ones interested, as ByteDance is said to have heard proposals from other companies and investment firms too. If the report is correct, investors value TikTok at a massive $50 billion, 50 times its $1 billion projected revenue for 2020. To put that into perspective, rival Snap is valued at 15 times its 2020 projected revenue at $33 billion.
The offer may not even be enough, as ByteDance executives have reportedly thrown around valuations even higher than $50 billion. One source said that if a deal can't be reached, ByteDance will look to divest its US operations to try and restore some trust with the U.S.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9