TikTok’s parent company ByteDance is valued at $ 140 billion based on its weight on the exchange
One solution to ensure the survival of the brand in the US is to get rid of the operation in that country.
In other words, the local offices of the platform were operated by a pseudo-independent organization.
Along with Huawei, the Chinese company most affected in the United States (US) fight with Beijing is TikTok. The emerging social network not only represents a risk for platforms such as Facebook and Snapchat, it has established itself as a good advertising channel. Furthermore, he has been accused time and again of being a national security risk. This, due to the ties that ByteDance, its owner, has with the Asian government. Various solutions have been put on the table.
Among the most popular is selling TikTok to a conglomerate outside of China. According to ., this is an ever closer possibility. And is that several investors have proposed to ByteDance to give them majority ownership, to ensure the future of the social network in markets like the US. The possibility in itself speaks volumes about the company’s future opportunity. But the most interesting thing is how much money is being offered.
Sources close to the deal between ByteDance and investors point out that TikTok has been valued at $ 50 billion. The figure is considerable on its own, but it’s even more impressive considering that it beats the valuation of rivals like Snapchat, which is estimated to be priced at $ 33bn. It’s also 50 times more than the company’s expected revenue for 2020, about $ 1 billion. It is uncertain whether the transaction will take place.
TikTok wins with its multi-million dollar valuation
The investor offer to ByteDance seems even more surprising considering that it has not been a very positive year for social media. TikTok rivals like Twitter have gradually seen their earnings drop, prompting them to consider new subscription systems. Facebook, the largest agent in this environment, is in the midst of a giant boycott by its advertisers. Even Instagram is already exploring new businesses.
Returning to the case of TikTok, the news of this offer is positive. With this multi-million dollar valuation, you can confirm that he is one of the most dangerous emerging players in the industry. The fact that investors are willing to buy the platform also reveals that there is a viable option for the organization’s future. After months of great uncertainty and attacks by the US government, the picture seems to be clearing up.
But that does not mean that everything is won. . notes that the owners of TikTok on ByteDance have calculated the value of the social network to be much higher than $ 50bn. This means that they may not be willing to accept the purchase offered by their partners. Also, just because this platform changes hands does not mean that your problems will disappear. The US may still continue its siege, regardless of who it affects.
Calculating the value of brands
It is generally newsworthy when a new, extraordinary valuation is achieved for a brand, as is now happening with TikTok. A few hours ago, Real Madrid came to the spotlight for being the most valuable group in the football industry. Almost a day ago Volkswagen agreed that Tesla could become the largest automaker on the planet. And recently Apple was close to being the largest company in the stock market.
However, it is worth mentioning that there is no specific formula to calculate the value of a brand like TikTok. Each agent looks at different elements. Kantar mixes both certain financial elements and the company’s weight in their respective industries, relative to its rivals. The Balance, there are different approaches that are going to give slightly different results. And several studies claim that the number changes depending on the specific situation.
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