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ByteDance seeks USD 2bn financing round
Posted on Friday, 06 November 2020 11:14
ByteDance is in ongoing negotiations to raise USD 2.00 billion for a post-money valuation of USD 180.00 billion in a round of funding from a group of investors that include Sequoia, Bloomberg reported.

Sources, who declined to be named as the matter is confidential, told the news provider the potential financing could come ahead of preparations for the listing of some of the group’s assets.

They noted multimedia app Douyin, which is only available in mainland China, and news and information content platform Toutiao may launch initial public offerings in Hong Kong.

No further information was disclosed and a representative for the Cayman Islands-incorporated, Beijing multinational technology holding company declined to comment when contacted by the news provider.

Bloomberg’s report comes as a subsidiary of ByteDance, Beijing Liangzi Yuedong Technology, said it is acquiring 45.05 million shares representing an 11.2 per cent stake in IReader Technology for CNY 1.10 billion.

This listed e-reading mobile application developer operates a platform where about 170.00 million users can access novels, magazines and anime, as well as audiobooks, each month of the first half of 2020.

According to a TechCrunch article in August 2020, ByteDance generated CNY 120.00 billion in revenue in 2019.

Some 67.0 per cent of this figure was derived from advertising sold on the group’s domestic apps, Douyin and Toutiao.

TechCrunch added ByteDance expects to book CNY 200.00 billion at its top line in 2020, with other emerging businesses contributing CNY 30.00 billion, or 15.0 per cent of annual turnover.

Zephyr, the M&A database published by Bureau van Dijk, shows 21,892 deals featuring private equity, venture capital and development capital investment have been announced globally in 2020 to date.

Of these, 20,015 are minority stakes targeting unlisted/delisted entities.

ByteDance’s proposed fundraiser – if announced - could be joint 12th by value.

© Zephus Ltd