A huge $ 3 billion investment by Japanese telecommunications media corporation SoftBank has turned Chinese mobile app developer Bytedance into the world's most expensive startup. Bytedance is the owner of the popular video applications for karaoke TikTok and the largest news outlet Toutiao. According to Bloomberg, Bytedance is worth $ 75 billion today. This is 3 billion more than the previous leader - Uber.
Uber is reportedly considering an IPO (the first public sale of shares), which, according to experts, will raise the company's capitalization to $ 120 billion. But for now, Bytedance is out of reach of a competitor, which is a huge achievement for a company that until recently was little known outside of China.
Certainly the takeover of Musical.ly, a social network for singing and dancing fans, has added weight to Bytedance. Combined with the features of the TikTok karaoke app, the latter has become popular with millions of American teens, which has made Facebook really interested.
Meanwhile, Toutiao is one of the most famous apps in China, with hundreds of millions of active users. The application employs artificial intelligence that closely monitors the user's news preferences and recommends the most relevant stories. In turn, Bytedance makes money through advertising. According to Bloomberg, last year the startup's revenue amounted to $ 2.5 billion, which, alas, still does not pay off the company's expenses.