TikTok may be one of the globe’s most popular social media platform, but ByteDance Ltd. — the video-sharing app’s Chinese-owned parent company — isn’t going public any time soon, The Wall Street Journal reported.
ByteDance’s interest in an initial public offering has been put on indefinite hold after Chinese government regulators asked the company to address some issues, including data-security risks, according to The Wall Street Journal.
- The decision to hold off on an IPO happened after ByteDance met with Chinese officials in March, Fortune reported, as part of ByteDance’s regular meetings with regulators.
- “Companies seeking to raise capital in overseas markets are now facing greater scrutiny, after China on Saturday proposed new laws that will require virtually all firms heading for an IPO outside of China to undergo a cybersecurity review,” according to Fortune.
- In December, it was estimated that ByteDance was worth $180 billion, The Wall Street Journal reported.
ByteDance has denied “speculation in the media” of its plans to become a publicly traded company, reported The Verge.
- “We don’t comment on rumors or speculation,” a spokesperson for ByteDance told The Verge on Monday.
- Earlier this spring, the social media company hired chief financial officer Shou Zi Chew, which led people to believe ByteDance was preparing an initial public offering, according to The Verge.
China cracks down on companies preparing to go public
This past weekend, the Cyberspace Administration of China announced that Chinese companies with upwards of 1 million users on their platforms would need to have a security review before going public abroad, Reuters reported.
- The focus of the review, the Chinese internet regulators said, would be to analyze data that could be “affected, controlled or manipulated by foreign governments after overseas listings” reported Reuters.
- Chinese authorities are also encouraging companies to go public domestically, according to Reuters.