Software

ByteDance, which developed TikTok, plans to borrow $ 5 billion for business development

Former US President Donald Trump insisted on restructuring TikTok’s business in this country, but as soon as his successor lost interest in this topic, the Chinese company ByteDance thought about raising capital for further development. The public offering of shares is complicated by the attention of the Chinese authorities to such actions, so ByteDance intends to raise $ 5 billion in loans.

Image source: The Information

Image source: The Information

In mid-summer, experts estimated the capitalization of ByteDance at $ 425 billion, but the company needs hard cash not only to expand its business, but also to refinance old debt obligations. As noted The Information With reference to knowledgeable sources, ByteDance is now negotiating with banks to provide a loan for a total of $ 5 billion. More than half of this amount will go to refinance old debts, as interest rates have now dropped to an attractive level for such measures.

ByteDance intends to spend the remaining funds on expanding its business in the US, Europe and Latin America, as well as other regions where it is necessary to develop server infrastructure and increase staffing. So far, neither the lenders nor the terms of the loan have been identified, but negotiations are underway.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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