Chinese short video platform Kuaishou could go public in the US next year to raise funds for its increasingly fierce competition with Bytedance, Bloomberg reported.
Why it matters: In addition to competing for a progressively overlapping domestic audience, the two short video giants have also started vying for the attention of users in overseas markets, where monetization has progressed relatively slowly for both companies.
Details: Kuaishou has also considered the option of listing in the US this year, according to the report, citing people familiar with the matter.
- The company is raising $1 billion in a pre-IPO round mostly from Tencent, which was made public by several Chinese media outlets last month.
- The $1 billion investment values Kuaishou at $25 billion.
A Kuaishou spokeswoman declined to comment when contacted by TechNode on Thursday afternoon.
Context: Tencent has been leveraging Kuaishou to compete with Bytedance after an earlier attempt to acquire Kuaishou was rejected by founder Su Hua, Chinese media LatePost reported.
- Tencent is in talks with Kuaishou to form a new partnership, according to LatePost. The most promising plan at the moment is to form a joint venture specializing in gaming, which could also incorporate features such as live-streaming, short video, and forum.
- Tencent’s $1 billion to $1.5 billion pre-IPO funding, together with its previous investments in Kuaishou, would give it a 30% to 40% stake in the short video platform.