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Abu Dhabi’s G42 Acquires $100 Million Stake in ByteDance at $220 Billion Valuation

Abu Dhabi-based AI firm G42 has acquired a stake exceeding $100 million in ByteDance, the Chinese parent company of TikTok, valuing it at $220 billion.

The stake was bought through G42’s 42XFund from existing investors over the past few months, according to a Bloomberg report citing sources familiar with the deal.

The report also noted that another fund purchased ByteDance shares shortly after at a valuation of $225 billion.

ByteDance’s current valuation marks a significant drop from the $300 billion set during a share buyback program last year, and a further decline from the $300 billion to $400 billion valuations seen in the secondary market in 2021.

Both the 42XFund and ByteDance have yet to respond to requests for comment from Reuters.

Earlier in the day, Bloomberg reported that TikTok, ByteDance’s popular short-form video app, is contemplating separating from its parent company to ease U.S. concerns about potential national security risks.

TikTok has faced increasing scrutiny and criticism in the U.S. over fears that user data could be accessed by the Chinese government, which could compromise Western security interests.

G42 is controlled by Sheikh Tahnoon bin Zayed al-Nahyan, who serves as the UAE’s national security adviser, adding another layer of geopolitical interest to the transaction.

ByteDance’s reduced valuation and TikTok’s potential spin-off come amid rising tensions and scrutiny from Western governments, reflecting the complex challenges facing Chinese tech companies in the global market.