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#BYMEspresso☕: Tik Tok Slapped--Cut Down Ad Revenue
Parent ByteDance has postponed plans for an initial public offering as investors flee riskier assets.
ByteDance grew into the world’s most valuable startup on the success of apps like TikTok and its Chinese counterpart Douyin, but it’s been squeezed between Beijing’s crackdown on internet firms at home and Washington’s suspicions of the services.
Concerns around how TikTok stores US user data and manages information flows between employees in China and elsewhere have resurfaced among American lawmakers and politicians as they geared up for the mid-term elections.
Like most social media platforms, TikTok makes most of its revenue from advertising.
Parent ByteDance has postponed plans for an initial public offering as investors flee riskier assets. In September, it offered to buy back as much as $3 billion of its own shares at a valuation of about $300 billion, giving existing backers a way to cash out.
Douyin makes far more revenue, but how the Chinese downturn affects that unit is unclear.
Representatives for TikTok didn’t immediately respond to a request for comment on the revenue target, which was first reported by the Financial Times.
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