Abu Dhabi funding agency Group 42 (G42) which is managed by Arab Emirates royal Sheikh Tahnoon bin Zayed Al Nahyan has acquired a $100 million stake in Chinese language web firm ByteDance, proprietor of the social media app TikTok, from current buyers at a valuation of $220 billion.
ByteDance Ltd. was valued at round $220 billion in a latest private-market funding by Abu Dhabi AI agency G42, a big low cost to the $300 billion that TikTok’s proprietor set throughout a latest share buyback program.
The Center Japanese agency could also be betting on ByteDance’s longer-term potential, as a rebounding Chinese language economic system buttresses tech giants rising from three years of Covid restrictions and countless regulatory crackdowns.
ByteDance, which gained a foothold within the US by shopping for TikTok’s predecessor, is certainly one of a handful of Chinese language app builders to have hit the large time overseas. That choose membership consists of upstarts like fast-fashion purveyor Shein Group, AliExpress and PDD Holdings Inc.’s bargains app Temu.
ByteDance’s marquee service drew advertisers eager on hitting a younger demographic. And it’s craved out a distinct segment promoting items to hundreds of thousands of social media customers through reside streams the world over.
That reputation spooked some in Washington. The White Home endorsed a bipartisan invoice final week that might grant the president authority to ban or pressure a sale of TikTok — which might deal a significant blow to the Chinese language agency’s worldwide ambitions.
A ByteDance IPO — the corporate has explored choices together with Hong Kong and the US — stays a methods off, given international market volatility. In September final 12 months, the Beijing firm provided to purchase again $3 billion of its personal shares at a valuation of about $300 billion, providing a method for current backers similar to Susquehanna Worldwide Group and Sequoia Capital to money in a few of their good points.
ByteDance, which can be backed by SoftBank Group Corp. and Temasek Holdings Pte, isn’t in pressing want of money after TikTok alone generated an estimated $12 billion of income in 2022.