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TikTok’s parent company, ByteDance, withdraws its IPO plans

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TikTok’s parent company, ByteDance, notified officials about dropping its IPO plans in late March, reports have stated.

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The wind now seems to be blowing against Chinese tech companies as regulatory confusion, including with DIDI, China’s largest ride-hailing service, that is pushing to list on the New York Stock Exchange (NYSE), continues.

The Wall Street Journal (WSJ) reports Beijing-based ByteDance had planned to go public in the United States or Hong Kong, but the plan was abruptly abandoned after founder Zhang Ming met with cyber and securities regulators late in March.

During that meeting, Chinese cyber regulators expressed serious concerns about the security of the vast personal information of hundreds of millions of people held by ByteDance.

In light of political and regulatory conditions, the 38-year-old founder decided that it was not the right time to go public.

In a statement posted to its social media account on April 23, ByteDance said, “After serious consideration, we have concluded that the company is not eligible for a public listing.” The reason for this was not disclosed.

ByteDance is one of the most valuable startups in the world, with investors such as Sequoia Capital and KKR.

During a capital raise last December, the company was valued at $180 billion.

Byte Dance also has a solid track record.

ByteDance announced in a memo to employees in June that its revenue more than doubled to $34.3 billion last year and its net income increased to $19 billion.

In contrast, ByteDance’s decision to delist was quick, as it had already been delisted once by Chinese authorities.

WSJ reports that Neihan Duanzi, a humorous app from ByteDance with vulgar content, was shut down by authorities in early 2018.

In a lengthy social media post, Chang apologized for his mistake and promised to strengthen the censorship function.

ByteDance was also one of 13 internet companies summoned to appear before financial regulators in April and commit to enforcing even stricter data and lending practices.

Additionally, it was among some 30 companies last month that publicly pledged to comply with antitrust laws.

The founding CEO, Zhang, retired in May.

For MetaNews.

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