ByteDance, the owner of TikTok, achieved over 110 billion dollars in sales revenue in 2023, thereby surpassing its competitor - Tencent - by almost 30 billion dollars. This confirms ByteDance's dominant position in the technology market.
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ByteDance is gaining an increasing advantage over other technology giants from China, including Alibaba and Tencent. Forecasts indicate that the owner of TikTok has a chance to close 2023 with record sales results of 110 billion dollars. In the case of Tencent, it is "only" 86 billion dollars, and in the following years it may only get worse. Just before the holidays, the company lost 43 billion dollars from its market valuation overnight after the Chinese government announced a series of further regulations aimed at limiting the time spent on video games.
Meanwhile, ByteDance maintained last year's growth rate at 30%, and its advantage is primarily marked in the segment of social video services (TikTik, Douyin) and expansion strategy in e-commerce.
According to CB Insights research, the current valuation of ByteDance is around 225 billion dollars, and the company itself is considered the most valuable private startup in the world. Although the company does not disclose specific profitability data, Financial Times reports that its earnings before interest, taxation, and amortization increased by 79% and amounted to about 25 billion dollars in 2022.
According to reports from The Information, 80% of TikTok's revenue comes from the domestic market, and the remaining 20% is generated internationally. Nevertheless, the company plans to implement a local strategy with Douyin, which assumes the combination of content with e-commerce in markets such as Indonesia.
An interesting element is the fact that TikTok also intends to invest 1.5 billion dollars in the e-commerce company, Tokopedia, which would mean taking over 75% of the shares in this company. Such a large transaction could potentially allow TikTok to avoid earlier restrictions imposed by the Indonesian government, and also allow it to spread its wings in the shopping area.
Despite successes in the field of video content sharing, ByteDance has decided to take restructuring steps in its Nuverse gaming unit. Recent layoffs involving over 1000 employees signal a change in strategy, which involves withdrawing from the mainstream of the video game industry.
This shows that the company is aware of the dynamic changes in this sector and is now directing its efforts to adapt to new trends and challenges in order to maintain flexibility and competitiveness in the entertainment market.
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