ByteDance is reshuffling its business to increase focus on its short video services. As part of this move, ByteDance CFO Shou Zi Chew is stepping down from the role to improve TikTok. Chew is also serving as the CEO of TikTok since May 2021.
In addition to the reshuffling of roles, ByteDance is also splitting to create six new business units or BUs. Rubo will replace ByteDance co-founder Zhang Yiming as the CEO in December 2021.
ByteDance has a valuation of around $300 billion
Additionally, the company’s services will be split into six branches comprising TikTok, Douyin, Lark, BytePlus, Nuverse, and Dali Education.
Lark is the company’s work collaboration unit, while BytePlus offers analytics-oriented business services. Meanwhile, Nuverse is ByteDance’s gaming division, and Dali Education is their education tech unit. In case you’re unaware, Douyin is the Chinese version of TikTok.
ByteDance specified that the Douyin unit would absorb news platform Toutiao and game streaming service Xigua. Meanwhile, the TikTok unit will focus on expanding to sectors like global e-commerce.
The company generates a ton of revenue from China through its wide range of products and services. Estimates suggest that around $34.3 billion of the company’s 2020 revenues came from the region. Interestingly, ByteDance said earlier this year that it doesn’t have plans for an IPO.
There’s currently no information on the replacement for the ByteDance CFO. However, Reuters cited sources saying that the company isn’t rushing to fill that vacant spot. ByteDance recently had a valuation of nearly $300 billion, putting it among the top private companies in the world.
ByteDance’s education unit Dali was hit by China’s decision to restrict curriculum-based teaching for profit. Keeping this in mind, Dali will remodel itself into offering utilities in the education sector. This could include AI-based learning or education for adults.
Recently, the company acquired VR headset maker Pico for an undisclosed amount. This was part of ByteDance’s effort to diversify its portfolio of products. “We are optimistic about the future of VR and its alignment with our mission,” a company spokesperson said about the acquisition.
The company has very little to worry about when it comes to TikTok. The app recently overtook Facebook as the world’s most downloaded app.