TikTok’s parent company, ByteDance which was founded in 2012 is now more valuable than the world’s biggest soda brand Coca Cola and energy giants, Exxon Mobil.
ByteDance was founded by Zhang Yiming in 2012 and he went on to launch TikTok, a video sharing application in 2016. Tiktok immediately became a hit on the internet. In less than two years of its launch, it became the most downloaded app in the world according to Forbes.
With over 500m active monthly users, TikTok quickly gained the attention of big venture capitalist firms who invested more in it.
READ: Exxon begins talks with domestic firms to divest businesses in Nigeria
Shocking comparisons
ByteDance was founded in 2012 and is currently more valuable than a company founded in 1892 (Coca Cola) and (1999) Exxon Mobil.
ByteDance, according to its company profile has over 60,000 employees while Coca Cola and its 300 bottling partners employ over 700,000 people. Exxon Mobil has an estimated 72,000 employees.
Difference in valuation
According to Bloomberg, ByteDance is currently trading at a valuation of more than $250 billion in the secondary market. The number is set to go up with some investors pegging the valuation at $350 billion.
ByteDance with a current valuation of $250bn is more valuable than Coca Cola which was recently valued at $235.33bn. ByteDance also beats Exxon Mobil which is currently valued at $237.08bn.
READ: Exxon Mobil to cut 14,000 jobs as pandemic hit oil demand, prices
What you should know
- The above story paints a clear picture of the power of the internet age. A company founded 9 years ago is currently more valuable than a transgenerational business like Coca Cola and Exxon Mobil.
- According to Investopedia a valuation is the analytical process of determining the current (or projected) worth of an asset or a company. An analyst placing a value on a company looks at the business’ management, the composition of its capital structure, the prospect of future earnings, and the market value of its assets.
