china, startup, bytedance reorganizes strategic investment team, causes panic

What a rollercoaster day for China’s tech industry. TikTok’s parent company ByteDance has dissolved its strategic investment team, sending worrying messages to other internet giants that have expanded aggressively by investing in other companies.

At the beginning of this year, ByteDance reviewed its “businesses’ needs” and decided to “reduce investments in areas that are not key business focuses,” a company spokesperson said in a statement.

ByteDance isn’t halting external investments outright, though; instead, the investment team will be “restructured” and “integrated across the various business lines to support the growth” of its business.

In other words, some members from its strategic investment team, which has backed 169 companies by far, according to Chinese startup database IT Juzi (some deals may not be public), will be reassigned roles in other business departments and continue to invest there.

The “restructuring” still stirred up a wave of panic in the industry. China’s cyberspace regulator has drafted new guidelines that will require its “internet behemoths” to get its approval before undertaking any investments or fundraisings, Reuters reported citing sources. Some Chinese media outlets also reported similar drafted rules.

“Behemoths” refer to any internet platform with more than 100 million users or more than 10 billion yuan ($1.58 billion) in revenue, said Reuters’ sources. That rule, if true, will put a slew of Chinese internet giants, from Tencent, Alibaba, Pinduoduo, JD.com to Baidu, under regulatory review for their investment activities. Tencent in particular is famous for its expansive investment portfolio, which earns it the moniker “the SoftBank of China.”

In a surprising turn, China’s cyberspace regulator said that the “rumored guidelines for internet companies’ IPO, investment and fundraising are untrue.” Furthermore, the authority will “investigate and hold relevant rumormongers responsible in accordance with the law.”

ByteDance’s motive for restructuring may indeed be to generate more synergies between its external investments and internal businesses. We don’t know for sure yet. But there are signs that China’s antitrust action on its internet darlings are nowhere near the end.

Tencent recently sold a great chunk of its shares in two of its most important allies, Chinese online retailer JD.com and Singaporean video games and e-commerce conglomerate Sea. While antitrust pressure wasn’t cited as the causes for its divestments, speculation is rife that China is continuing to blunt the monopolistic power of its largest interent platforms. A handful of them have received various degrees of fines for violating anti-competition rules, but a pause on their investment game will carry much greater consequences. The question now is who’s next.

NEWS RELATED

OnePlus WellPaper app receives an update with new settings, interactive wallpapers

OnePlus is continuing its push for mental health awareness with its WellPaper app.

View more: OnePlus WellPaper app receives an update with new settings, interactive wallpapers

It’s Alive: RTX 4090 Ti Cooling Apparatus Appears in Leaked Photos

This site may earn affiliate commissions from the links on this page. Terms of use. The constant drip of rumors about Nvidia’s upcoming RTX 40-series GPUs has now progressed from Twitter posts to actual photos. A user on the Chiphell forums has posted snapshots of what appears to be the ...

View more: It’s Alive: RTX 4090 Ti Cooling Apparatus Appears in Leaked Photos

Acer Bets That Gamers Will Sacrifice FPS for Glasses-Free 3D

Acer The trend that nobody asked for is back. At least, that’s what Acer is betting on with its newest gaming laptops and monitors. Using advanced “SpatialLabs” technology, these new devices automatically convert 2D content into glasses-free 3D. But the immersion offered by this feature comes at a price. ...

View more: Acer Bets That Gamers Will Sacrifice FPS for Glasses-Free 3D

US recovers $15 million from global Kovter ad fraud operation

The US government has recovered over $15 million from Swiss bank accounts belonging to operators behind the ‘3ve’ online advertising fraud scheme. Switzerland transferred $15,111,453.84 to the US government as part of a Final Order of Forfeiture related to United States v. Sergey Ovsyannikov, one of the conspirators in ...

View more: US recovers $15 million from global Kovter ad fraud operation

Samsung Galaxy S22 series is being contemplated with a new update

A couple of months have passed since the Galaxy S22 series launch. However, the devices are still hot thanks to Samsung and its updates. The Korean firm has been doing a great job with updates for its smartphones overall, but as usual, the Galaxy S22 as the current flagship gets ...

View more: Samsung Galaxy S22 series is being contemplated with a new update

Stunning old school Macintosh icons turn your modern Mac into something way cooler

Source: Ben Vessey What you need to know A new icon kit turns modern Macs into Macintoshes. 166 custom icons are included in the base Old School kit. Custom icons can be made if required. Have you ever looked at your Mac and wished it looked a little more like ...

View more: Stunning old school Macintosh icons turn your modern Mac into something way cooler

Why you should care about Apple's new Accessibility features even if you don't need them

Source: Joseph Keller / iMore As someone without a disability, I rarely think about how I interact with my technology. Whether I’m writing an article on my Mac, checking social media on my iPhone, or starting my favorite workout on my Apple Watch, I do it without a thought. Unfortunately, ...

View more: Why you should care about Apple's new Accessibility features even if you don't need them

Apple rolls out new training and certification programs for iPhone, iPad and Mac

You can take the classes on your own, at your own pace, and only pay when you're ready to take the exam.

View more: Apple rolls out new training and certification programs for iPhone, iPad and Mac

Apple Watch Series 8 leaks point to big redesign with flat edges

Google's Russian business plans to file for bankruptcy

Discovery uncovers need for ammonia emission regulations

Next-generation weather models cross the divide to real-world impact

Build new data science skills with this A-to-Z training bundle deal

Two-step molecular process rewires nutrient transport in wild thale cress

Graphene-wrapped zeolite membranes for fast hydrogen separation

For wetland plants, sea-level rise stamps out benefits of higher carbon dioxide

Solar Orbiter: Striking new imagery of our Sun has been released

Fintech unicorn Slice wants to diversify beyond its credit card offering

5 Best Accessories For Your RGB Gaming PC

Best Cases for the 2018 and 2017 9.7-inch iPad 2022

OTHER NEWS