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Tiktok operator Bytedance is repositioning itself

Bytedance, the operator of the short video service Tiktok, is planning to restructure the group into six business areas. In addition, Tiktok boss Shou Zi Chew wants to give up his additional position as CFO of Bytedance in order to be able to concentrate on Tiktok. Reuters reported this on Tuesday, citing an internal memo to the Bytedance employees.

In the memo, Bytedance co-founder Liang Rubo explains how the group should be structured in the future. Accordingly, the Beijing-based company will comprise six business areas in the future. In December, Liang is due to take over the post as CEO of Zhang Yiming, who announced his resignation in May because, according to his own admission, he “lacks some of the skills that make an ideal manager.” Apparently Liang is now implementing his first ideas about the lineup of Bytedance.

According to Liang, Bytedance will include the Tiktok business units, its Chinese counterpart Douyin, the Lark business collaboration platform, the video game publisher Nuverse, the BytePlus business services and the educational technology provider Dali Education. Liang believes that business areas and teams that work closely together are actually grouped into one business area.

Like it according to Reuters The memo goes on to say that Bytedance’s products for the Chinese market are to be combined in the Douyin division. In addition to Douyin itself, this includes the news aggregator Toutia and the video streaming platform Xigua. In the future, Dali Education is to concentrate on services for educational actors, including learning with artificial intelligence, adult education and “intelligent hardware”. So far, Dali has offered curriculum-based tutoring for money. However, the Chinese government had cut such for-profit tutoring services, so Dali had to reorient and lay off employees.

Tiktok boss Shou Zi Chew, who has also been CFO at Bytedance since March, also wants to reorient himself. He wants to give up the post so that he can concentrate fully on Tiktok, Liang wrote in the memo to the employees. A successor has not yet been named and the position may not be filled, according to company circles.

Bytedance is said to have turned over around 34.3 billion US dollars in 2020. The majority of this is said to have been generated in the home country of China. Bytedance canceled a planned IPO in July 2021. The cancellation was due to a political and regulatory environment that was not ideal for an IPO. Chinese regulators had urged that the group should concentrate better on data security.

Apparently, the Bytedance IPO is now even further afield. Because with a possible elimination of the CFO position, there is no one responsible for it. In March, Shou’s occupation as chief financial officer was still seen as an indication of an imminent Bytedance IPO.

(olb)

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