Increased scrutiny of cybersecurity supposedly prompted the TikTok founder to play it safe.
Thanks to a combination of a rapidly ballooning userbase and the general rise in social awareness that has brought about, TikTok has become one of the most ubiquitous social media platforms in the world in a relatively short span of time. That ubiquity has already made ByteDance, the Chinese company that owns TikTok, quite wealthy, though in order to break into the western markets in earnest, it would need to launch on the western stock exchanges through an IPO. According to a rumor reported by The Wall Street Journal, such an IPO was in the works, but the ByteDance execs decided to pull the chute at the last minute.
TikTok owner ByteDance shelved its IPO plans after Chinese regulators warned about data-security risks, people familiar with the matter said https://t.co/bTeSSB3qEV
— The Wall Street Journal (@WSJ) July 12, 2021
According to the report, the company was weighing the idea of an IPO in the United States and Hong Kong back in March. However, due to the recent increase in scrutiny on other tech firms from Chinese regulators, ByteDance’s founder, Zhang Yiming, decided to hold off, at least until they could talk with the regulators and address any existing concerns about cybersecurity. There’s also the fact that the company didn’t have a CFO at the time, so any major financial moves may have been ill-advised.
TikTok owner ByteDance took different approach from Didi, shelving offshore IPO intentions after Chinese regulators warned about data security. Beijing-based comp was valued $180bn in last funding round in Dec. Nasdaq China Index has plunged 35% from ATH. https://t.co/DADbyExRq2 pic.twitter.com/ND4xdsRiQz
— Holger Zschaepitz (@Schuldensuehner) July 12, 2021
When questioned on the rumor by CNBC, a ByteDance spokesperson said that they do not comment on rumors or speculation.
Biden Moves Up Afghanistan Departure
Pete Alonso Wins Home Run Derby
-
Mattel has won back the lucrative license from Hasbro. Back in 2016, Mattel lost the rights to produce dolls...
-
James Iannazzo hurled slurs and threats at the workers of a smoothie shop. On Sunday, Merrill Lynch financial advisor...
-
Walmart is planning for the advent of the Metaverse. Massive retail chain Walmart filed several trademarks at the tail-end...
-
The retailer is expecting an underwhelming quarter. Athletic apparel retailer Lululemon stated in a press release today that the...
-
Wood is cheaper, but prices remain firm. Lumber prices have tumbled in the last several months, erasing any gains...
-
Apple and Google can no longer force app developers to use their payment methods. A major point of contention...
-
The company reclaimed over $100 million from Steve Easterbrook. Back in 2019, McDonald’s CEO Steve Easterbrook was terminated from...
-
Vishal Garg is in hot water for his treatment of employees. Last week, Vishal Garg, CEO of startup mortgage...
-
The revived toy retailer will open a two-level location in the American Dream mall. At the beginning of 2021,...
-
Amazon won’t accept Visa cards due to high fees. Online retailer Amazon announced today that starting in January, they...
-
Bitcoin and Ether are on a multi-day kick. The value of the US dollar is currently down slightly compared...
-
The $5.6 billion acquisition was the largest Coke has ever made. For a long time, Coca-Cola’s primary entry into...