Wency Chen · · 1 min readTiger Global becomes stakeholder in Bytedance, joining SoftBank and Sequoia
New York-based investment firm Tiger Global Management has built a stake in TikTok owner Bytedance through a 21-month share purchase activity at a low multiple of future free cash flow, in tow with Softbank and Sequoia Capital, to back and monetize the rapidly growing startup, the Financial Times reported on Monday, citing sources.
Photo credit: Bytedance
According to the report, Bytedance’s shares recently have been transacted on secondary markets with a company valuation of between US$90 billion and US$100 billion, up at least 20% from two years ago when SoftBank led a US$3 billion funding round for the Beijing-based company.
Tiger Global, also an investor in e-cigarette startup Juul and Chinese ride-hailing giant Didi Chuxing, did not disclose the volume of the investment. It projects Bytedance will account for a 19% market share of China’s online advertising industry.
The company appointed new China operation heads, while its founder Zhang Yiming will put his focus on global expansion.
This report was first published on KrAsia.
Editing by Miguel Cordon
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