UAE’s G42 Acquires Over $100 Million Stake in ByteDance at $220 Billion Valuation

ByteDance Ltd., the Chinese parent company of TikTok, has been valued at $220 billion in a recent private-market investment by Abu Dhabi AI firm G42.

This valuation is significantly lower than the $300 billion that ByteDance set during a recent share buyback program.

G42, controlled by United Arab Emirates royal Sheikh Tahnoon bin Zayed Al Nahyan, acquired a stake of over $100 million from existing investors in recent months through its 42XFund. Investors King understands that another fund also bought into ByteDance at a valuation of $225 billion shortly after.

The gyrating price tag of ByteDance reflects the uncertainty that has set in since Washington signaled it may be open to outlawing TikTok, which lawmakers have accused of being a national security threat. TikTok’s leadership is discussing the possibility of separating from its Chinese parent to help address those concerns, although that’s a last resort.

However, ByteDance’s valuation in the G42 transaction doesn’t yet reflect the potential after-effects of the Silicon Valley Bank implosion, which raised concerns about broader systemic risks. ByteDance’s valuation has also dropped significantly from its peak of around $460 billion in 2021 when Tiger Global Management bought shares.

Sheikh Tahnoon, known as the UAE’s spymaster, has built a portfolio through G42 in everything from cloud computing to vaccines and driverless cars.

Last year, his AI firm set up the $10 billion 42XFund to invest in technology companies across emerging markets. It recently hired Jason Hu, the former investment head with China’s JD.com Inc., to expand its footprint across Asia.