What happened: ByteDance is hoping to raise $3 billion in an equity-fundraising round that could prop up its value to up to $75 billion, according to WSJ sources. If the goal is completed, the parent company of Jinri Toutiao and Douyin AKA Tik Tok could become one of the most valuable private tech companies in the world. However, this amount could change and there is no guarantee Bytedance will achieve its targeted valuation.
Why it’s important: Just yesterday, the Financial Times reported that ByteDance will seek an IPO next year because the government’s heavy crackdowns on content during this year killed the company’s fundraising round. If the new funding round news is true, the IPO will likely be postponed. ByteDance itself said in July that it has no plans for an IPO after local media suggested that it will list in Hong Kong.