Surpassing Netflix, TikTok Parent Company ByteDance's Asset Value Reaches 280 Trillion Won

Surpassing ExxonMobil and Coca-Cola Market Cap in 9 Years of Startup
Bloomberg: "Domestic and International Risks Exist Amid US-China Regulatory Trends"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The parent company of the mobile video platform TikTok, ByteDance, has been valued at over $250 billion (approximately 283 trillion KRW). However, due to ongoing domestic and international risks such as the generally weak stock performance of Chinese tech companies amid regulatory stances in both the U.S. and China, there are calls for a thorough analysis of the asset valuation.

According to Bloomberg on the 29th (local time), ByteDance, the Chinese software company behind TikTok, recorded an asset value exceeding $250 billion in the over-the-counter market. This means that ByteDance, founded in 2012, has surpassed the market capitalizations of traditional U.S. stock market giants ExxonMobil ($243 billion) and Coca-Cola ($232 billion) within nine years. It also overtook Netflix, the leading company in the same industry and the world's largest video streaming service (OTT), which has a market capitalization of $227.6 billion.

Previously, in 2017, ByteDance was recognized with an asset value of $140 billion following a paid-in capital increase. Last month, through a private transaction in the over-the-counter market, its asset value reached $200 billion.

The increase in asset value is interpreted to be due to TikTok's solid market share maintenance and rapid revenue growth. According to Bloomberg, last year's revenue reached $35 billion, more than doubling from the previous year, and the global user base, including China, reached 1.29 billion.

However, there are also claims that evaluating ByteDance's asset value is premature due to persistent domestic and international risks surrounding the company.

ByteDance previously became a key issue in the U.S.-China trade dispute during the administration of former U.S. President Donald Trump. There were allegations that ByteDance, a Chinese company not free from Chinese government control, collected data from American TikTok users and provided it to the Chinese government. In response, former President Trump designated TikTok as a national security threat and pushed for the sale of TikTok's U.S. business operations as a follow-up measure.

However, with President Joe Biden's inauguration, he announced a review of the overall trade policies of the Trump administration, and as part of this, the sale of TikTok's U.S. business was temporarily suspended.

Additionally, as Chinese authorities declared their intention to strengthen regulatory stances by forcing domestic big data companies to establish joint ventures with the government to collect consumer data, the stock prices of Chinese tech companies have also turned bearish. Tencent, for example, has dropped about 19% since reaching its peak in January, and Alibaba has fallen approximately 16% compared to last month.

Bloomberg stated, "With ByteDance's initial public offering (IPO) expected, investors have preemptively valued the company. However, since the issue of selling the U.S. business has not been fully resolved and the Chinese government has declared stronger control over big data companies, domestic and international risks still remain."

This content was produced with the assistance of AI translation services.