2024-04-07 23:20:34
TikTok is increasing its income at full speed and is already standing up to Facebook in the battle to be the social network that raises the most money each year. According to the company’s accounts, leaked to the Financial Times, TikTok’s parent company, ByteDance, would have earned about $120 billion in 2023getting dangerously close to the 134,902 million registered by Meta, the company that owns Facebook, Instagram and Whatsapp.
The Chinese company is not listed on the stock exchange and, therefore, does not have to make its accounts public. But this leak occurs when the US Congress is debating a law that would force ByteDance to choose between selling its social network or being banned in the main western market.
In these circumstances, the accounts indicate that TikTok would have entered 16,000 million dollars in the US market, a record figure that has driven the 40% growth of ByteDance, which recorded profits of 28 billion. Even so, most of its income continues to come from China, its main market, where it has the Douyin social network (very similar to TikTok).
TikTok continues to be in the red due to the large amount of money that the firm has invested in advertising and infrastructure to consolidate its growth around the world, but Its enormous income would lead the social network to add a valuation of 150,000 million dollarscomparing it with the multiples in which Facebook moves.
These data would hinder former US Treasury Secretary Steven Mnuchin’s plan to buy TikTok. This Thursday, the billionaire investor announced on CNBC that is organizing an international group to bid for the network if the US Senate definitively approves the law to give the ultimatum to ByteDance.
By: EL ECONOMISTA.es