TikTok, a Chinese-based video-sharing app, has already shown success in its business. Due to its millions of users worldwide, TikTok has been a surprising social media app, especially in today's pandemic. Since the business seemed to be going extremely well for ByteDance, its owner, investors want a share for this success. Reportedly, this business tycoon is the one leading the bidding for the app's prices. Here's who it is and how much will it costs him.
TikTok is being sold to an American businessman?
TikTok, one of the teens' favorite apps today, may be faced with huge changes for the next years to come. Reuters exclusively reported that the privately-held company had received multiple investment offers since the start of its success.
An amount of $50 billion is the current amount that has been offered to ByteDance, to sell the Chinese app. The projected 2020 revenue of TikTok ranges at $1 billion. However, investors seemed to think that this amount is too little for the app.
They now projected its 2020 revenue for an amount of $50 billion-- this was 50 times the original revenue. Snap, one of its main competitors, only has a $33 billion 2020 revenue.
Interestingly, the two top companies looking to have a piece of TikTok are United States-based firms. These companies are California-based company Sequoia and New York-based company General Atlantic.
So far, General Atlantic is the company that seemed to be in its closest position to buy the famous app.
Who's going to buy TikTok?
General Atlantic is a growth equity firm, led by its CEO and billionaire William Ford. This American tycoon is the one that aims to purchase TikTok from the Chinese company ByteDance.
In Wikipedia, Ford is already named as one of the corporate board members of ByteDance. This means that the company may have the edge first to buy shares of the app.
ByteDance resolves its biggest problem
You may have already heard about the speculations against TikTok. Early July, Tech Times reported that hacktivist group Anonymous claimed that TikTok is a 'Chinese malware' that everyone should be alarmed with.
If you think about it, this problem may be a challenge for the investors, since people could be dropping the app anytime they see fits. However, on Wednesday, July 29, TikTok has finally resolved this huge issue.
The Verge noted that the Chinese app is now opening its algorithm to the public, in order to prove that they are a well-secured app, even pushing their competitors to do the same.
"[W]e believe our entire industry should be held to an exceptionally high standard," writes TikTok CEO Kevin Mayer in a blog post. "That's why we believe all companies should disclose their algorithms, moderation policies, and data flows to regulators. We will not wait for regulation to come, but instead, TikTok has taken the first step by launching a Transparency and Accountability Center for moderation and data practices."
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