ByteDance plans to drops its securities business
According to LatePost, ByteDance intends to sell its securities business at an overall valuation of $77.3 million USD to $154.6 million USD. The sale began in the first half of 2021, and ByteDance has successively communicated with CICC, CITIC, Fosun Group, NiuGuWang, and Eastmoney Investment. Two of the companies have presented letters of intent for investment.
ByteDance has made it clear internally that it will no longer engage in the securities business in the future.
ByteDance’s securities business consists of two parts: platform products and stocks in Hong Kong and the U.S. The platform products mainly consist of “Hai Tun Gu Piao”, a stock market quotation software launched in 2017. The main profit model is the paid stock investment courses and value-added services such as stock advisory recommendations. Among them, the stock advisory recommendation service is provided through Beijing Jinmeilin Investment Consulting Co., Ltd. acquired by ByteDance in 2018. This company has securities investment and consulting qualifications and is also within the scope of this sale.
ByteDance’s financial business layout is mainly undertaken by its financial business department, which has independent R&D, product, operation, and strategic personnel, and its business scope includes insurance, stocks, payments, securities, and wealth management.
“Byte financial business will focus on serving internal users in the future.” Bytedance responded. Users can choose to pay through Douyin when shopping in live broadcast rooms and Douyin stores to enjoy the freight insurance service provided by the platform.
After the Spring Festival of 2021, ByteDance abandoned its long-prepared wealth management business.
At the same time, ByteDance launched its DouFenQi, an “consume now, pay later” online consumer financial service concentrated in e-commerce application scenarios.
