Everything you need to know about the TikTok IPO

August 18, 2022

0 87 5 minutes read

Dual Coverage: Can I Have Two Dental Insurance Plans? | Delta Dental

tiktok ipo: will tiktok go public?

tiktok will go public…eventually. Its parent company, Bytedance, confirmed in 2020 that TikTok Global, a new US entity, will have its IPO at some point. this will be separate from bytedance’s IPO, which is also in the works.

Maybe you are interested

Rumors about TikTok’s potential IPO were reignited in April 2021 following a Bloomberg article detailing the unicorn’s preparations. When the IPO happens, TikTok is likely to go public in the United States, and Bytedance’s domestic assets will go public in Hong Kong. In the long run, this split will probably prove to be a smart move for bytedance, as it will help defuse political tensions between the US and China.

Reading: When is tiktok ipo

However, the tiktok IPO is on the back burner for now, as bytedance has struggled to comply with Chinese and US stock market regulations. This is due to the fact that its two apps, TikTok and its Chinese counterpart Douyin, have yet to achieve operational separation, meaning the two companies share the same algorithm and much of the same technology. this has meant that US and Chinese regulators are dissatisfied with the structure of the business.

The whole thing is not helped by the friction between the us governments. uu. and China, which has made the Chinese government increasingly strict with the actions of big technology companies. The United States is also assessing security issues surrounding Chinese tech companies operating in the United States. Under President Trump, TikTok was completely banned, but Biden has yet to make his formal stance known.

Despite all these hurdles, bytedance is still expected to go public due to the significant amount of capital it could raise which could boost its global business strategy.

when will the tiktok ipo happen?

There is no confirmation that tiktok will go public, let alone when it will happen. Rumors had the IPO date sometime in 2020, which was pushed back amid trump’s threats to ban the app entirely.

There is now speculation that the app will go public sometime in late 2022 or early 2023. But, until all regulatory issues are resolved and tiktok is spun off from its sister company douyin, it’s unlikely to be anytime soon. .

how much is tiktok worth?

In July 2020, investors valued TikTok at around $50 billion, which was already more than established social media giants like Snapchat. although two years later, this figure could be closer to $75 billion.

however, bytedance as a whole is worth much more. in private equity markets, estimates of its value have risen to $250 billion, with some sources suggesting as much as $400 billion, which would make it the world’s most valuable startup.

how to trade the tiktok ipo

Once TikTok is listed, you will be able to trade its shares in the same way as any other stock on the market. Find out about ipo trading with us.

In the meantime, you can trade stocks with the city index by following these simple steps:

open a city index account or log in if you are already a client
find the company you want to trade with on our award-winning platform
choose your position and size, and its stop and limit levels
place the trade

Alternatively, you can practice stock trading on a demo account risk-free.

what is tiktok?

tiktok is a video application that allows users to create content with popular music and filters, which are shared with both fans and global users. then popular videos are widely shared on other social networks, such as facebook, instagram, snapchat, twitter and youtube.

Originally called Douyin, it was created in China in 2016 and launched globally as TikTok the following year. the app is still called douyin in the chinese market.

tiktok has become incredibly popular over the last year, especially during the coronavirus pandemic, when lockdown measures forced more and more people to go online to pass the time. as of early 2021, it had more than 689 million active monthly users worldwide. Despite being a relatively young app, TikTok is already one of the most downloaded apps in the world.

However, it has already had its fair share of controversies, and not just the disputes between the us and the US. uu. and China mentioned above. In 2019, TikTok was briefly banned in India due to concerns about pornographic content and predatory behavior on the app. And again it was banned in India amid Sino-Indian tensions over tech companies failing to protect data. TikTok’s Chinese owner was also fined $5.7 million by US authorities for illegally collecting children’s data.

what is byte rate?

bytedance was founded in 2021 by zhang yiming; The company is headquartered in Beijing, China. Following the success of his news app toutiao, which means “headlines,” yiming went on to develop tiktok and its Chinese equivalent douyin.

while tiktok is what bytedance is best known for globally, the app only contributes about 3% to the parent company’s revenue; the rest is made up of their domestic activities. however, tiktok meant that bytedance succeeded where many other chinese tech companies failed: it expanded beyond china.

how does tiktok make money?

tiktok makes money from the ads displayed on the platform, a service it offers to brands that allows them to promote products within the app. also offers in-app purchases of coins that can be redeemed for digital gifts: users can “gift” them to their favorite friends, followers, or creators.

The company’s additional revenue streams are live streaming, gaming, and e-commerce.

is bytedance profitable?

As a private company, it can be difficult to determine exactly how much money TikTok and its parent company make. As of 2020, TikTok was estimated to have earned approximately $1 billion in revenue. but this is only a fraction of bytedance’s total revenue for the year, which was roughly $30 billion.

tiktok’s current projected valuation ($50 billion) puts it at 50 times its current revenue. but, according to reuters, the company’s management team expects to reach revenues of 6,000 million dollars in 2021.

biggest tiktok investors

currently, the main shareholders of tiktok are:

cmb wing lung bank
morgan stanley
goldman sachs
bank of china
k3 investors
primavera capital group
kohlberk kravis roberts
tiger global management
ggv capital

what is tiktok’s business model?

TikTok’s business model combines the classic social media platform strategy that allows users to share content with a creative platform that allows users to create and share their videos. functionality-wise, it’s a mix of instagram, facebook, and youtube.

The element that makes tiktok stand out is that it is powered by artificial intelligence. When users interact with content, the app collects their data, which is fed into TikTok’s machine learning algorithm. this allows the app to refine the quality of users’ content feed and improve the content experience, which the company says, in turn, increases engagement and generates more data.

according to tiktok: “our mission is to capture and present the world’s creativity, knowledge and precious moments of life, directly from the mobile phone.”

tiktok’s business model has also had to take into account the regulations it now faces in different countries. After being banned in India, TikTok reduced its staff in the country to minimize its losses. And following tensions with the US, Bytedance cut off TikTok from all of its assets in China to ease US regulations on its operations.

who are the competitors of tiktok?

tiktok aspires to global dominance in the realm of video content creation and although it competes with other big names like instagram which launched reels after the success of tiktok, it is still the most popular content creation app among young people or “generation z”. .

tiktok’s dominance was helped by the fact that it bought its most direct competitor, musical.ly, in August 2018 for $1 billion.