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ByteDance investors value TikTok at $50 billion in takeover proposal, says Reuters

ByteDance received a bid from some of its investors to transfer majority ownership of TikTok to them

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  • The investors’ bid values TikTok at 50 times its projected 2020 revenue of about $1 billion, according to Reuters’ sources;
  • TikTok’s rival, Snap is valued at 15 times its projected 2020 revenue.

Some investors of TikTok‘s parent company ByteDance seeking to take over the app are valuing it at about $50 billion, significantly more than Snap, said people familiar with the matter to Reuters.

The media outlet reports that ByteDance is considering a range of options for TikTok amid pressure from the United States to relinquish control of the app: the Committee on Foreign Investment in the United States (CFIUS), a U.S. government panel which reviews deals by foreign acquirers for potential national security risks, has raised concerns about the safety of the personal data that TikTok handles under its Chinese owner.

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ByteDance received a bid from some of its investors, including Sequoia and General Atlantic, to transfer majority ownership of TikTok to them, people with knowledge have told Reuters. It has also fielded acquisition interest in TikTok from other companies and investment firms, they have said.

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The investors’ bid values TikTok at 50 times its projected 2020 revenue of about $1 billion, according to the sources. By comparison, Snap is valued at 15 times its projected 2020 revenue, at about $33 billion, according to data provider Refinitiv, Reuters said. However, one of the sources said ByteDance executives recently discussed valuation projections for TikTok that exceed $50 billion.

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It is also on ByteDance’s table exploring divesting only TikTok’s U.S operations, one of the sources said. Still, there is no certainty that ByteDance will agree to any deal, the sources said.