ByteDance
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ByteDance is a technology company operating a range of content platforms including TikTok, its Chinese specific equivalent, Douyin and news aggregation app Toutiao.
Why do we own it?
ByteDance uses artificial intelligence technology to change how content is distributed to users. Its underlying technology learns over time the types of stories a user most enjoys and automatically adapts the algorithms to personalise their feeds. Unlike other social media platforms, ByteDance is uniquely placed given it is enjoying considerable success both within China but also internationally with TikTok, which is available in over 150 markets.
ByteDance monetises its various applications through advertising. The company is growing into a large market and has the potential to shape the size of this market by offering advertisers the ability to reach their desired customers with precision. Furthermore, ByteDance has shown an ability to evolve with users’ tastes by creating new apps that it can scale rapidly. This means that ByteDance can maintain a relationship with its users as tastes change.
Who is key?
In 2012, 29-year-old Yiming Zhang founded ByteDance with the view that machine learning would revolutionise the way people encountered information. There was some scepticism in the early days about the business model, but it is now considered a global AI tech leader. Zhang has also helped create a unique corporate culture at ByteDance with an ‘always day 1’ mantra; “always maintain an entrepreneurial mindset; keep pioneering and innovating instead of relying on past achievements”.
First bought
in May 2019.
ByteDance has long been celebrated as an ‘app factory’ for its proven business model of churning out apps and monetising them.
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