What is ByteDance, TikTok’s parent company in the US? – 03/14/2024 – Tech

Since its birth in a Beijing apartment 12 years ago, ByteDance has become one of the largest technology groups in the world, best known as the creator of the video-sharing app TikTok.

However, the popular social network is currently facing a tough campaign in Washington. The House of Representatives (deputies) approved this Wednesday (13) a bill that could ban the application in the United States if it does not cut ties with its parent company.

What is the size of the ByteDance?

ByteDance has managed to position itself in recent years as one of the most valuable companies in the world, valued at around US$225 billion (R$1.11 trillion), ranking above SpaceX or OpenAI, according to market intelligence firm CP Insights .

TikTok, an application launched in 2017 by the Chinese company as an international version of Douyin —which currently has hundreds of millions of users—, captivated the world and attracted more than 1 billion users in four years.

Thanks to the enormous growth of these networks, ByteDance has also ventured into e-commerce and travel booking, and claims to have more than 150,000 employees in almost 120 cities around the world.

This private group does not disclose its revenues and profits, but press estimates place it at the same level as some of the largest companies globally.

In 2023, ByteDance’s sales exceeded US$110 billion (R$546.69 billion), Bloomberg indicated in December, a number greater than the estimated revenue of Chinese technology giant Tencent for the same year.

ByteDance did not respond to AFP’s questions about its profits.

Both TikTok and Facebook’s parent company Meta pay the AFP and more than 100 fact-checking organizations to fact-check videos that may contain false information.

Who belongs to ByteDance?

According to TikTok, around 60% of ByteDance belongs to institutional investors, including the American giant BlackRock. Its founders own 20% and the rest belongs to employees.

The Chinese company, incorporated in the Cayman Islands, also has General Atlantic among its investors. Three of its five board members are Americans, TikTok said.

A Chinese state entity owns 1% of Douyin, according to ByteDance’s website. TikTok guarantees that this is a requirement under Chinese legislation and that it does not affect the headquarters’ international operations.

The specialized technology portal The Information indicated in 2021 that this 1% stake accompanied a seat on the group’s board.

In March last year, during a US Congressional hearing, TikTok CEO Shou Zi Chew responded “I believe so” when asked whether a Chinese government official was on ByteDance’s board.

However, he assured that TikTok would not be “manipulated by any government”.

Because the ByteDance concerns the United States?

Many American lawmakers are not so sure that TikTok is independent of Beijing, despite its headquarters not being in China.

The bill approved this Wednesday in the House of Representatives seeks to pressure TikTok so that the social network separates itself from ByteDance.

Those who support this initiative claim that the company allows Beijing to spy on and manipulate around 170 million users in the United States.

American intelligence and security agencies — including the FBI director this week — share these concerns.

TikTok has been banned from the work cell phones of government employees in the United States and other countries, such as Australia and Canada, for security reasons.

What do they say to ByteDance What about TikTok?

Both guarantee that there is no risk to American user data. The TikTok CEO insists that the Chinese government never asked for this data and that it never provided it.

The application says that it passes all its traffic in the United States through infrastructure in the country itself.

If the law is approved, the company will take the case to court, according to Bloomberg. However, its fate in the Senate is uncertain, as important figures do not want to take such drastic action against the popular social network.

And China?

China has stated several times that it is against the forced sale of TikTok and, this Wednesday, criticized the company being targeted.

“The United States government, although it has never found evidence that TikTok poses a threat to American national security, has not stopped cracking down on it,” said Foreign Ministry spokesman Wang Wenbin, citing “behavior intimidating.”

Any sale of TikTok will likely require Beijing’s approval.