ByteDance IPO likely delayed to late 2022 and beyond amid regulatory uncertainties in China, sources say

Asia's Tech News Daily

its previous statement in April, downsized its financial arm, algorithms

ByteDance, owner of the popular short video app TikTok, may see its plan to go public postponed until late 2022, after regulatory hurdles in China are resolved, according to three people briefed on the matter.

One source told the South China Morning Post that the start-up, the world’s largest unicorn with some private investors valuing it at US$400 billion, is unlikely to receive the go-ahead from Chinese authorities to float the company before the Communist Party’s 20th congress, which is expected to take place next autumn.

With government efforts to formulate new data regulations still under way, there is little possibility that the Beijing-based firm, founded by Chinese entrepreneur Zhang Yiming nearly a decade ago, could win quick approval for an initial public offering, a second source with close ties to ByteDance investors said.

In a major revision of its cybersecurity review rules proposed in July, the Cyberspace Administration of China (CAC) is seeking to demand a review of any digital platform operators holding personal data from at least one million users ahead of overseas listings.

That came after the internet watchdog announced a cybersecurity probe into ride-hailing giant Didi Chuxing, citing national security grounds. The result of that review has yet to be announced, and public canvassing for the updated IPO rule only concluded recently.

It is yet unclear how future cybersecurity reviews would be implemented and whether they would apply to listings in Hong Kong, a city usually not considered a “foreign” market under Chinese regulations.

A third source told the Post that authorities advised ByteDance, which added a government delegate to the board of its main domestic subsidiary earlier this year, “not to rush” to go public.

The sources declined to be identified as the matter is private.

In response to a request for comment by the Post, a ByteDance representative reiterated its previous statement in April that the company has no IPO plans. It also denied a Financial Times report in August that it would seek to list in Hong Kong in either the fourth quarter of 2021 or early next year.

With the company’s IPO now on the back-burner, some existing shareholders have tried to cash out.

Bloomberg News reported on Thursday that the US-based options trading firm Susquehanna International Group, one of ByteDance’s earliest and largest investors, is looking to sell about US$500 million of its shares, citing unidentified sources. Another shareholder recently sold its equity stakes valuing the company between US$360 billion and US$370 billion, according to the report.

Trades in ByteDance shares published anonymously on Chinese internet service platforms such as 36Kr also show an active market for stakes in the company.

The question of when ByteDance will go public has been a guessing game among investors for a while. Last year, the company generated more than 236 billion yuan (US$36.8 billion) in revenue – an increase of 11 per cent from a year ago, according to public financial information. Its main video sharing app in China, Douyin, has over 600 million daily active users.

Plans for ByteDance to expand its business in China this year, however, have run into several road bumps.

The company has laid off thousands of people in its online education unit and downsized its financial arm after Beijing increased control over those industry sectors. It has also dismissed staff at its local offices in smaller cities such as Wenzhou and Jinhua in Zhejiang province, as well as Luoyang in Henan province, according to Chinese media, as the government tightened its grip on algorithms, a key part of TikTok and Douyin’s smart recommendation technology.

In contrast, TikTok has thrived abroad after former US president Donald Trump failed in his attempt to ban the app in the country. The company announced last month that the app’s monthly global users reached 1 billion.

Despite TikTok’s growth, 38-year-old Zhang announced in May that he would step down as chief executive of the company that he founded. He has been out of the public eye for months, apart from appearing in a photo taken in his hometown in the southeastern Fujian province in June, when he donated 500 million yuan to support local education.

Zhang recently overtook Tencent Holdings founder Pony Ma as the richest person in China’s internet industry with a net worth of US$59.4 billion, according to Forbes’ real-time billionaire ranking.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

One of the best gaming headsets around is just $59 for Cyber Monday

Cyber Monday PC gaming deals are here, so now is a great time to pick up the HyperX Cloud II gaming headset for just $59 over at Amazon right now. ... Read more »

COVID-19: How worrying is the new B.1.1.529 omicron variant?

Experts say the new COVID variant has the potential to be more transmissible and evade vaccines. But what exactly is the new strain originally found in South Africa? Read more »

OnePlus spotted on OnePlus Care app, expected to launch in India soon

NEW DELHI: OnePlus is said to launch the OnePlus 9RT smartphone in India soon. The smartphone is rumored to launch with a different name in India. Likely to be called ... Read more »

This Cyber Monday Beats PowerBeats Pro deal drops buds to their lowest price ever

We’ve seen a lot of fantastic Cyber Monday Beats deals this year, many of which have carried over from the Black Friday sales. If you’re looking for a superb pair ... Read more »

Marvel MMO game is in development by ‘DC Universe Online' studio

From the “DC Universe Online: World of Flashpoint” launch trailer | Photo via PlayStation / YouTube screenshot Most of the video games based on Marvel IPs have featured fighting, action, ... Read more »

Did Archaeologists Just Find Evidence of Hanukkah Stories?

Gil Cohen-Magen/AFP via Getty Images This week marks the beginning of Hanukkah, the “festival of lights.” The holiday commemorates an event during the Maccabean revolt in the second century BCE, ... Read more »

Why Tencent's Tenpay has been fined $436,000 by China regulator

China’s foreign exchange regulator said it fined Tencent Holding’s Tenpay for violating foreign exchange rules, as authorities step up supervision of the country’s fintech industry. The State Administration of Foreign ... Read more »

Redmi to launch Note 11T 5G with 90Hz display, Mediatek 810 chipset and 5,000mAh in India on November 30

Chinese smartphone maker Xiaomi is all set to launch its Redmi Note 11T 5G smartphone in India on September 30. The company will reveal this mid-range smartphone through a virtual ... Read more »

Nissan to invest $17.6 billion for more powerful electric vehicle batteries

Nissan said Monday it is investing 2 trillion yen ($17.6 billion) over the next five years and developing a cheaper, more powerful battery to boost its electric vehicle lineup. The ... Read more »

This fintech firm has become India's latest unicorn

Indian fintech company Slice said on Monday it had raised $220 million in a Series B funding round led by investment giant Tiger Global and private equity firm Insight Partners ... Read more »

Sir Frank Williams Dies Aged 79

Sir Frank Williams, founder of the Williams Racing Formula 1 team, has died aged 79. He built the team named after him into one of the most successful in the ... Read more »

S. African president calls for reversal of 'unjustified' travel bans

In a televised address, he also said that authorities would not be considering economic lockdown restrictions for the time being. Ramaphosa did add, however, that his government was considering making ... Read more »

Omicron symptoms mild, says doctor who spotted it

Dr. Angelique Coetzee, a private practitioner and chair of South African Medical Association, told Reuters that on Nov. 18 she noticed seven patients reporting at her clinic who had symptoms ... Read more »

Gary Barlow on FaceTime with Elton John

Gary Barlow discusses what it was like hanging out with Elton John over FaceTime during lockdown while planning their duet performance of “Your Song” for his YouTube series, The Crooner ... Read more »

These budget wireless earbuds are even cheaper for Cyber Monday

Wireless earbuds can be very expensive, but this Cyber Monday deal proves that you don’t have to break the bank if you need a new pair of in-ear headphones. Usually ... Read more »

Xbox series X stock - live: Who could restock Microsoft's console next this Cyber Monday?

(iStock/The Independent) Today is 29 November and that can only mean one thing – it’s Cyber Monday! This used to mean in-store Black Friday deals shifting to the internet, but ... Read more »

Best deals on smartphones during Flipkart's Black Friday Sale: iPhone 12, Motorola Edge 20 Pro, and more

Flipkart’s Black Friday sale is live bringing offers to smartphones across different price segments. So, if you are looking to buy a smartphone in India right now, here are some ... Read more »

Save up to 30% on popular Anker accessories this Cyber Monday

The Cyber Monday deals are rolling out, and Cyber Monday Anker deals are always some of the best and most popular. The brand makes top-notch accessories that are also great ... Read more »

‘Cyberpunk 2077' update: CD Projekt Red confirms ‘Patch 1.5' will arrive in Q1 2022

Photo credit: MEAX PROD / Unsplash The first anniversary of “Cyberpunk 2077” is happening in less than two weeks, but CD Projekt Red confirmed it is not planning on releasing a major update ... Read more »

I'm A Celebrity: Richard Madeley says David Ginola was ‘admonished' by show bosses over rule break

Richard Madeley has opened up about the moment David Ginola was “admonished” by the bosses on I’m A Celebrity… Get Me Out Of Here! Madeley was forced to exit the ... Read more »

Dutch police arrest couple attempting to flee quarantine for Spain

Dutch health authorities find 61 passengers who arrived from South Africa as COVID-19 positive, in Amsterdam AMSTERDAM (Reuters) – Dutch military police said on Sunday they had arrested a married ... Read more »

Strictly Come Dancing Pro Nikita Kuzmin Suffers Wardrobe Malfunction As He Ditches Shirt During Dance-Off

Tilly Ramsay and Nikita Kuzmin (Photo: BBC) Strictly Come Dancing professional Nikita Kuzmin suffered a bit of a wardrobe malfunction during Sunday night’s results show when he took off his ... Read more »

Omicron variant will cause chaos in schools, warn MPs

Cartoon The omicron variant will lead to “chaos” in schools, MPs have warned, with children set to be forced into self-isolation by the new rules. In an attempt to prevent ... Read more »

Save some serious cash on 1440p with these Viewsonic Cyber Monday monitor deals

If you’re looking for a great Cyber Monday monitor deal, we’ve got one for you from Viewsonic with this curved ViewSonic VX3268 for just $238, $83 off its list price. ... Read more »

Is Sony working on a PlayStation mobile controller based on DualShock 4?

Source: (Vincent Tullo/The New York Times) A new patent filed by Sony Interactive Entertainment Japan (SIE), shows a PlayStation-branded mobile controller, designed to hold a phone in the centre flanked ... Read more »

Best Cyber Monday Black Friday laptop deals UK 2021: Offers on Microsoft Surface, Apple and more

(Black Friday) When it comes to bagging a serious bargain, there’s really no better time than Black Friday and Cyber Monday. The sales events are the biggest days in the ... Read more »

Amazon adds even more Shark vacuum deals in time for Cyber Monday

It’s never a safe bet to assume that Cyber Monday deals will improve upon their Black Friday counterparts, particularly when it comes to vacuum cleaners – but Amazon has taken ... Read more »

Best small business software of 2021

<div data-image="https://cdn.mos.cms.futurecdn.net/9Eh5mQqur3DifoRJkFZ3Fj-200-100.jpg" data-link="https://www.dpbolvw.net/click-6361382-14077115?sid=hawk-custom-tracking" data-link-text="View Deal" data-webp-image="https://cdn.mos.cms.futurecdn.net/9Eh5mQqur3DifoRJkFZ3Fj-200-100.jpg.webp" data-widget-introduction=" Google Workspace : Collaboration + productivity apps There are many different office software suites but Google Workspace formerly known as G Suite remains ... Read more »

Struggling to get Dyson's airwrap this Cyber Monday? Ghd's alternative is on sale with 20% off

The tool is designed to give your locks body and lift from root to tip (The Independent) Cyber Monday is upon us, bringing with it thousands of deals on everything ... Read more »

Cyber Monday Black Friday Amazon deals 2021: Amazon Fire tablet , Echo Dot, Kindle and Ring doorbell offers

(ES Composite) The supersonic rise of Amazon from a humble bookseller operating out of a garage to an online giant is one of the business world’s greatest success stories. The ... Read more »

What is PTSD? Experts on the symptoms, treatment and causes as Japan's ex-princess Mako shows it can strike anyone

As Japan’s ex-princess Mako shows us, mental illness can strike anyone, no matter how rich or famous. Mako married her commoner boyfriend Kei Komuro on October 26, not before the ... Read more »

Key specs of Oppo's first foldable smartphone leaked

Rumours around Oppo’s first foldable smartphone have been in circulation for quite some time now. Although the company has not officially confirmed any plans about the device, tipsters have revealed ... Read more »

The Samsung Galaxy S21 Plus just dropped to its lowest price ever... again

The Samsung Galaxy S21 series have been the smartphone highlights this Black Friday season, and a new deal for Cyber Monday means the Plus model has hit its best price ... Read more »

Nagami 3D prints "aesthetically pleasing" portable toilet using plastic waste

Discarded plastic medical equipment from hospitals across Europe was melted into a filament and 3D-printed to create the mobile toilet cubicle The Throne, designed by Spanish studio Nagami for the ... Read more »

Micromax may release In Note 1 Pro with Helio G90 chipset on December 15 in India

Micromax tried to make a comeback to the Indian audience with the Micromax In series that was launched by the home-grown brand in December 2020. The company then released the ... Read more »

Cyber Monday gaming chair live blog: the best Razer, Secretlab and Corsair deals

Refresh 2021-11-27T18:31:15.616Z Read more »

Cyber Monday laptop live blog: the best chromebook and laptop deals live now

Refresh 2021-11-27T19:20:39.982Z It’s early on Cyber Monday morning, so let’s get deal hunting! If you want a sleek and modern laptop, you can get the Asus VivoBook 15 OLED, with ... Read more »

Italy hits Apple and Google with $30.9 million anti-trust fine

European countries have cracked down on the business practices of Big Tech in recent years. ROME (AFP) – Italy’s anti-trust watchdog imposed 20 million euros (S$30.9 million) in fines on ... Read more »

Samsung overhauls personnel system to nurture young leaders

A worker is seen behind a door carrying a Samsung logo at the Samsung Electronics building in Seoul in this file photo. Korea Times file By Yi Whan-woo Samsung Electronics ... Read more »

[Hydrogen Korea] S-Oil looks to bring world's cheapest green hydrogen from Saudi Arabia

Lee Jeung-ik, vice president of the new business division at S-Oil, is seen during an interview with The Korea Herald at the company headquarters in Mapo-gu, western Seoul. (S-Oil) With ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic