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Investors value TikTok at $50bn for takeover

Investors value TikTok at $50bn for takeover

Mubasher: TikTok has been valued at around $50 billion by some investors planning to control the social media app, which is much higher than peers including Snap Inc, according to Reuters.

This value is 50 times more than TikTok's expected 2020 revenues of around $1 billion, sources remarked.

TikTok's Chinese parent company ByteDance is weighing several deals to sell the app after the US announced earlier this month its plan to ban TikTok and some Chinese applications for several security reasons.

The application, which allows its users to form short videos, becomes very popular among US teenagers, raising concerns about the safety of the collected personal data, which could be used by the Chinese government.

ByteDance has received deals from some of its investors, such as the US-based Sequoia and General Atlantic to buy the majority of TikTok.

One of the sources said that it is unclear whether ByteDance's founder and CEO, Yiming Zhang, will accept the investors' bid values.

Another source referred that ByteDance could consider ending only the app's US operations if a deal for the whole app cannot be reached.