TikTok Parent Fetches $220B Valuation From UAE Spymaster: Report

ByteDance Ltd, the Chinese parent of TikTok, was valued at $220 billion in a private-market investment by a company controlled by United Arab Emirates spymaster Sheikh Tahnoon bin Zayed Al Nahyan.

What Happened: Sheikh Tahnoon acquired a stake, valued in excess of $100 million, from existing investors in recent months, reported Bloomberg, citing people familiar with the matter.

The stake was reportedly purchased by Sheikh Tahnoon-associated G42 at a discount to the $300 billion that ByteDance set during its share buyback program.

Another fund purchased a stake in ByteDance at a $225 billion valuation shortly after G42 picked up the stake, a person familiar with the matter told Bloomberg.

See Also: How To Invest In Tech Startups

Why It Matters: ByteDance’s shifting valuation was attributed to the United States indicating a potential ban on TikTok, the popular short-form video application, noted Bloomberg.

Washington is worried about the potential security threats posed by TikTok and some serious headway has been made on passing regulations for such a ban to come into effect. 

Sheikh Tahnoon’s firm is reportedly basing its investment on ByteDance’s long-term potential as China emerges from its COVID-era restrictions.

Read Next: If TikTok Is Banned, Readers Overwhelmingly Say They’ll Flock To One Specific App

Image and article originally from www.benzinga.com. Read the original article here.