TikTok has cut approximately $2 billion from its projected ad revenue for 2022, highlighting the effects of a worldwide economic slowdown that has hit other internet giants like Google and Meta Platforms Inc.
TikTok has slashed its ad forecast for 2022 from at least $12 billion to $10 billion as stated by Chief Executive Officer Shou Zi Chew during a recent meeting.
The scaled-back goal reflects a decline in marketing expenditures globally as businesses and consumers cut budgets and get ready to weather a future recession.
As they prepared for the mid-term elections, American lawmakers and politicians once again expressed concerns about how TikTok manages information flows between employees in China and other countries and stores user data from the US.
As investors avoid risky assets, Parent ByteDance has postponed plans for an IPO.
It provided existing investors with an option to cash out by offering to buy back up to $3 billion of its own shares in September at a valuation of roughly $300 billion.
Though Douyin generates significantly more revenue, it’s unclear how the slowdown in China is affecting that division.
Source: The Malaysian Reserve
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