Bytedance, The Owner And Co-Founder Of Tik-Tok Has Made Its Earnings Double In 2020
Image Credit – BBC
The Chinese company ByteDance, the mastermind behind big hit video app Tik-Tok made a huge profit last year. With its global popularity, the company doubled in earnings in just one year.
The firm’s total revenue took a big leap by 111% to $34.3bn (£25.6bn) for 2020. Such figures show unexpected results and the experts are not sure whether the quarantine and lockdowns being an enhancer here.
The report has come out like several other Chinese tech giants including the ByteDance are facing pressure from the government of different countries.
ByteDance alone saw its annual gross profit increasing to a handsome figure of 93% to $19bn. The recorded net loss is only $45bn for a similar time span. However, it was a part of the accounting adjustment that does not bother the company’s operations.
The internal memo which was released to staff not only showed the numbers of revenue of ByteDance but also a huge user base of around 1.9bn monthly active users. It was recorded across all its platforms in December, last year.
The company has been scrutinized by governments of different countries around the world including the US but that did not affect its business or user base. It is showing some growth instead.
Earlier this month, President Joe Biden signed an executive order to force some Chinese applications to take major measures. It was regarding the privacy of user data which will determine whether they will stay in the US or not.
Starting from Biden’s predecessor Donald Trump, Joe revoked the executive order of Trump that was made to ban the Chinese applications like WeChat and TikTok in the United States.
The US Department of Commerce said that the applications were designed and developed by “the jurisdiction of a foreign adversary” as per China the executive order never came into force.
President Joe Biden said that an “evidence-based approach” is needed to find out the risk to US national security. Trump also repeatedly accused ByteDance as officials and politicians raised high concerns regarding personal data being exposed to the Chinese government.
The company recently faced a shook up as the company’s CEO and co-founder Zhang Yiming made an announcement in May. He took a step down and promised to he would be succeeded by fellow co-founder Rubo Liang.
Mr. Zhang said, “The truth is, I lack some of the skills that make an ideal manager. I’m more interested in analyzing organizational and market principles, and leveraging these theories to further reduce management work, rather than actually managing people.”
He further added, “Similarly, I’m not very social, preferring solitary activities like being online, reading, listening to music, and contemplating what may be possible.”
The rising controversy of whether to ban these apps or keeping them is being biggest concern now in different countries.
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