TikTok, a globally popular social media platform, has garnered significant attention from both users and investors. However, questions regarding its ownership and investment opportunities in TikTok remain a common topic of curiosity. This article will address questions about ownership and how to invest in TikTok.
1. Who owns TikTok?
TikTok, one of the most popular social media platforms today, is owned by ByteDance, a major technology conglomerate based in China. ByteDance was founded in 2012 by Zhang Yiming and Liang Rubo. Similar to how Meta Platforms (Facebook, Instagram) or Alphabet (Google, YouTube) manage their platforms, ByteDance serves as the parent company of TikTok, controlling and overseeing the operations of this platform.
ByteDance’s reach extends beyond TikTok, as it also owns various other apps and platforms, including Douyin (the Chinese version of TikTok), Mobile Legends, PICO, Lemon8, and Baike.com. Initially, ByteDance launched Toutiao, a content platform that delivers personalized news using advanced algorithms, marking the beginning of its journey in developing technological products.
Financially, ByteDance has demonstrated impressive growth, with a valuation of $268 billion in December 2023, according to the South China Morning Post. This reflects the company’s strong financial stability, despite previously reaching a peak valuation of over $400 billion. These figures solidify ByteDance’s position in the technology industry, on par with other giants in the digital space.
2. Does TikTok have a stock? What is TikTok’s stock symbol?
TikTok currently does not have a publicly traded stock on the stock market. It is a private company, with the majority of its shares owned by ByteDance Limited, the parent company of TikTok. The largest investors in the company include Sequoia Capital, General Atlantic, and Hillhouse Capital Group.
Although TikTok does not have publicly listed shares, there is a related stock symbol for TikTok on the stock market, called TikTok Global. However, this stock symbol is not widely traded, and TikTok has not yet conducted an IPO (Initial Public Offering) to release its shares on the stock market.
3. Can TikTok stock be purchased?
On September 21, 2020, ByteDance planned to release TikTok Global on the U.S. market with the aim of conducting an IPO. However, before the IPO could occur, ByteDance intended to conduct a small funding round, in which ByteDance would retain 80% of TikTok Global’s shares, while Walmart and Oracle would hold 20%, corresponding to 7.5% and 12.5% of the shares, respectively.
However, TikTok’s IPO plans have been indefinitely postponed due to security-related allegations.
Nevertheless, TikTok’s stock is not directly listed on the stock exchange. Instead, investors can indirectly access it through the shares of Walmart (WMT) and Oracle (ORCL), two companies that have been involved in investing in TikTok.
Additionally, another way to own TikTok shares is through private equity funds such as EquityZen and AngelList, where investors can participate in ByteDance’s secondary market before an IPO. However, investing through these funds requires investors to have a high net worth, and opportunities to join the funding rounds in the short term are quite limited.
In 2019, ByteDance valued TikTok at about 75 billion USD in a funding round. By May 2020, TikTok’s valuation had increased to over 100 billion USD. In September 2022, ByteDance proposed purchasing TikTok shares at 17 USD per share, estimating the company’s value at up to 300 billion USD, significantly higher than giants like Tencent, Alibaba, Meta, or Amazon.
4. Should you invest in TikTok?
With over 1.56 billion monthly active users, TikTok shows great investment potential. Its revenue grew from $63 million in 2017 to $9.4 billion in 2022, indicating strong growth and market expansion. Since its launch, TikTok has been downloaded 3.3 billion times, making it the fifth-largest social media platform worldwide.
However, investing in TikTok carries risks. Its connection to ByteDance, a Chinese company, has raised concerns about oversight in various countries, with some like India, Iran, and Pakistan banning the app. In the U.S., debates continue over its presence, with past calls for divestment and state-level restrictions.
Moreover, TikTok faces stiff competition from YouTube Shorts, highlighting the ever-changing digital media landscape. Despite strong growth, investors should weigh potential growth against political and competitive risks.
Although TikTok hasn’t had a direct IPO, investors can access it indirectly through companies like Walmart and Oracle or via private equity funds. TikTok’s future remains promising, continuing to shine in the tech industry.
