AsianFin -- As TikTok battles to keep its popular video app accessible in the US, investors in ByteDance Ltd., its parent company, are having to reassess the financial outlook for a business that was valued at over $300 billion as recently as late last year. Some of these American shareholders contend that, although a ban would deal a short - term blow to their stakes, ByteDance's China operations are the true engine behind the high valuation and any potential future returns.
This is because approximately 80% of ByteDance's revenue, which is headquartered in Beijing, originates from China and products like Douyin, a TikTok - like app specifically tailored for the Chinese market. While TikTok has 170 million users in the US, the app has been downloaded nearly 5 billion times in other markets worldwide, according to app intelligence firm Sensor Tower, indicating that it can continue to thrive in several key countries regardless of the US situation.
Any resolution regarding TikTok in the US — even if it results in a ban — would remove a significant obstacle for ByteDance should it ever consider going public, an outcome that has long been speculated for the tech giant and would be nearly impossible with the threat of a US shutdown looming over the company.
Explore more exclusive insights at nextfin.ai.
