Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Baidu, Inc.    BIDU

BAIDU, INC.

(BIDU)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive: TikTok owner ByteDance considers listing China business in Hong Kong or Shanghai - sources

share with twitter share with LinkedIn share with facebook
07/31/2020 | 05:15am EDT
FILE PHOTO: Man walks by a logo of ByteDance, which owns short video app TikTok, at its offices in Beijing

Chinese tech giant ByteDance is considering listing its domestic business in Hong Kong or Shanghai, people familiar with the matter told Reuters, against a backdrop of rising Sino-U.S. tensions over its hit non-China video app TikTok.

Of the two venues, the company prefers Hong Kong, according to two of the people. One of the two also said ByteDance is simultaneously studying the option to list its smaller, non-China business - which includes TikTok that is not available in China - in Europe or the United States.

The eight-year-old Beijing-based tech and media company had originally wanted to list as a combined entity, including TikTok and other operations, in New York or Hong Kong in a blockbuster deal. TikTok allows smartphone users to film and upload short videos with special effects within seconds.

But ByteDance has been in talks with bourse operator Hong Kong Exchanges and Clearing (HKEX) over the China business listing, one of the people said. The company was also discussing it with Chinese securities regulators, according to the other two people.

Reuters previously reported China accounts for the bulk of ByteDance revenue, which one source said was around $16 billion in 2019.

A standalone listing could value the China business at more than $100 billion in Hong Kong or on Shanghai's Nasdaq-style STAR Market, according to two sources.

The review of separate plans for the China business comes amid growing concerns over U.S. regulatory scrutiny and uncertainty over whether a 2013 audit deal between Beijing and Washington, that underpins Chinese firms listing in the United States, will remain intact.

The people interviewed by Reuters said the idea of splitting the whole business into two public listings and the venue discussions are preliminary and subject to change. They spoke on condition of anonymity because the information was private.

Plans may also be complicated by some heavyweight ByteDance investors looking to take over TikTok at a valuation of $50 billion. TikTok faces pressure from U.S. regulators who have spoken about banning the app, or requiring ByteDance to sell it, over suspicions Beijing could force its owner to turn over data on U.S. users.

ByteDance declined to comment. HKEX said it doesn't comment on individual companies. The China Securities Regulatory Commission didn't respond to a request to comment.

BYTEDANCE VALUED AT UP TO $140 BILLION

The discussions about the two listings were initiated before the investor plans for a separate TikTok buyout emerged, according to one source, but after the Committee on Foreign Investment in the United States (CFIUS) started to look into on TikTok's handling over user data last year.

The plans for the two listings may also not directly influence how TikTok's future will unfold, that person said.

ByteDance was valued at as much as $140 billion earlier this year when one of its shareholders, Cheetah Mobile, sold a small stake in a private deal, Reuters has reported.

It generated around $2.9 billion in profit for 2019, according to one of the people familiar with the matter. The company has set a 2020 revenue target of about 200 billion yuan ($28.62 billion). TikTok, over the same period, is expected to hit revenue of $1 billion.

The bulk of revenue comes from advertising on apps under its Chinese operations including Douyin - a Chinese version of TikTok - and news aggregator app Jinri Toutiao, as well as video-streaming app Xigua and Pipixia, an app for jokes and humorous videos.

Some of the company's other overseas apps include work collaboration tool Lark and music streaming app Resso.

In March, ByteDance founder Zhang Yiming announced a more independent personnel structure for the China business, by appointing a dedicated chairman and chief executive for the China business, while retaining the role of global chief executive himself.

The China business listing idea comes as diplomatic strains have risen between Beijing and capitals in countries elsewhere including the United States, India and Britain.

U.S.-listed Chinese companies also face tightened financial scrutiny and stricter audit requirements from U.S. regulators, prompting a number of Chinese companies including search engine giant Baidu and online travel firm Trip.com Group to consider abandoning a New York listing and move instead to an exchange closer to home.

Shanghai's tech-heavy STAR Market, seen as part of Beijing's campaign to become self-sufficient in core technologies, has become the second largest market globally for IPOs so far this year, after the Nasdaq, with $10.3 billion raised via offerings. Hong Kong's bourse ranked third with $8.9 billion raised, according to Refinitiv data.

By Yingzhi Yang and Julie Zhu


Stocks mentioned in the article
ChangeLast1st jan.
BAIDU, INC. -3.11% 130.7 Delayed Quote.3.40%
CHEETAH MOBILE INC. 0.00% 1.91 Delayed Quote.-47.38%
NASDAQ COMP. -3.14% 11004.868219 Delayed Quote.27.40%
TRIP.COM GROUP LIMITED -0.54% 29.33 Delayed Quote.-12.55%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.25% 6.7246 Delayed Quote.-3.48%
share with twitter share with LinkedIn share with facebook
All news about BAIDU, INC.
10/26WPP appoints former Baidu executive Ya-Qin Zhang to board
RE
10/23BAIDU, INC. : quaterly earnings release
10/23BAIDU : China's carmakers seek more government support for smart car supply chai..
RE
10/23Moscow Exchange to expand number of foreign shares on offer to 40
RE
10/18FINAL DEADLINE : Rosen, Global Investor Counsel, Reminds Baidu, Inc. Investors o..
BU
10/17SHAREHOLDER ALERT : Pomerantz Law Firm Reminds Shareholders with Losses on their..
PR
10/15BIDU SHAREHOLDER DEADLINE : Bernstein Liebhard LLP Reminds Investors of the Dead..
PR
10/14Baidu Up Over 8%, On Pace for Largest Percent Increase Since January -- Data ..
DJ
10/09BAIDU : ROSEN, TRUSTED AND TOP RANKED INVESTOR COUNSEL, Reminds Baidu, Inc. Inve..
PR
10/09STAY FOCUSED ON CONCENTRATION : Mike Dolan
RE
More news
Financials
Sales 2020 106 B 15 703 M 15 703 M
Net income 2020 11 124 M 1 653 M 1 653 M
Net cash 2020 97 742 M 14 526 M 14 526 M
P/E ratio 2020 28,5x
Yield 2020 -
Capitalization 300 B 44 579 M 44 579 M
EV / Sales 2020 1,91x
EV / Sales 2021 1,51x
Nbr of Employees 37 779
Free-Float 78,9%
Chart BAIDU, INC.
Duration : Period :
Baidu, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BAIDU, INC.
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 37
Average target price 1 027,36 CNY
Last Close Price 879,47 CNY
Spread / Highest target 52,9%
Spread / Average Target 16,8%
Spread / Lowest Target -0,15%
EPS Revisions
Managers
NameTitle
Yan Hong Li Chairman & Chief Executive Officer
Cheng-Chun Yu Chief Financial Officer
Hai Feng Wang Chief Technology Officer
Ji An Ding Independent Director
Brent Callinicos Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BAIDU, INC.3.40%46 008
ALPHABET INC.13.52%1 089 295
NAVER CORPORATION52.01%36 518
Z HOLDINGS CORPORATION58.13%33 256
YANDEX36.88%20 963
SOGOU INC.95.38%3 442