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