ByteDance prepares for a historic iPO

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Date: 21.04.2021

The internet titan ByteDance is seeking to increase ad revenue for its China-based businesses including Douyin and Toutiao to 260 billion yuan ($39.8 billion) this year from 183 billion yuan in 2020, according to the memo seen by Bloomberg News. The target excludes short-video sensation TikTok. It’s also aiming for e-commerce gross merchandise value of as much as 600 billion yuan, up from 170 billion yuan last year.

Douyin -- TikTok’s Chinese twin -- is targeting 680 million daily active users, compared with around 610-620 million in March. The targets are preliminary and still subject to change, according to a person familiar with the matter, who declined to be identified discussing internal targets. A ByteDance spokesperson didn’t immediately respond to an email request for comment.

The aggressive targets underscore ByteDance’s intention to take on China’s largest internet companies on their turf. The firm -- whose overall revenue more than doubled to $35 billion last year -- has kicked off preparations for an IPO of some of its main businesses, including Douyin, and is choosing between Hong Kong and U.S. as the listing venue, people familiar with the matter have said. It could raise at least several billion dollars from a listing of the Chinese assets, although the size could still change as deliberations are at an early stage.

If ByteDance hits its sales goal, its Chinese arm will have done in nine years what it took Facebook 13 to achieve, and that excludes TikTok and other businesses abroad. At $40 billion, the nascent ad business would be roughly twice that of YouTube’s.

Based on: BloombergQuint 

#News #IPO #ICO #ByteDance #Wcryptn.com

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