Bytedance gave the figure in a letter to its investors, Bloomberg reported Monday. Bytedance is not listed on the stock exchange and is not required to publish financial figures.
Exactly how much Tiktok contributed to Group sales remained unclear. It is likely to remain a small proportion, while the bulk of the business is generated in the home market. Bytedance operates the separate Chinese Tiktok variant Douyin there. "The Information" pointed out that Tiktok had forecast advertising revenue of around ten billion dollars for the year in November, two and a half times that of 2021. Tiktok has more than one billion users worldwide.
Under political pressure in the USA
The short-video platform is under pressure in the West following warnings that Chinese authorities are spying on its users. Tiktok rejects the suspicions and courts trust with plans for data storage in the U.S. and Europe, as well as independent oversight.
In the U.S. - where Tiktok has more than 150 million users - the model doesn't seem to be enough. There, discussions are intensifying about a ban on the app. According to media reports, U.S. authorities are demanding a withdrawal of Chinese shareholders.
Tiktok stresses that it does not see itself as a subsidiary of a Chinese group, since Bytedance is 60 percent owned by Western investors and its official headquarters are in the Cayman Islands in the Caribbean. Critics counter that with a 20 percent share, the Chinese founders held control thanks to higher voting rights, and Bytedance has a large headquarters in Beijing.
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"TikTok's leadership is discussing the possibility of separating from Chinese parent company ByteDance to defend against accusations that it would compromise national security," it said in a Bloomberg-report. However, a sale of the subsidiary, which could lead to an outright sale or an initial public offering of securities, is seen as a "last resort."
"Whether or not the sale actually happens depends on whether or not the national security commissioners in various countries sign off on the portal's existing practices," the experts said. However, they also stress that TikTok bosses probably could not decide on the implementation of such spin-off plans all by themselves. It is much more likely, they say, that the Chinese government will take the helm on this matter itself. "It would have to approve the sale. Given their previous statements on the subject, they might refuse to do so," the assessment said.
Pressure from the White House
As early as 2020, during the term of office of former US President Donald Trump, fears were voiced that TikTok could be used by China specifically to manipulate public opinion in other countries or to act as a spying tool. At that time, too, pressure was increased on the portal operators to sell their own app to new US owners. But under the new President Joe Biden, these plans were dropped again. In view of the recent tensions between the two superpowers, the White House is now switching back to the old line. (pte/swi)
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