- Sep 8, 2020
Plus the battering of their image internationally. That would take some serious effort to repair.It's not the market size loss that's hurting them. It's the loss in market capitalization / valuation of their companies. These are calculated on the basis of future profits. For example, Bytedance's IPO was expected to explode on the basis of 1 billion Indians being addicted to TikTok thanks to cheap chicom smartphones and Jio-driven disruption of the mobile Internet market that made Internet access practically free. Chicoms miscalculated the scale of India's economic response. They didn't expect government to pull the plug on tax-generating/revenue-generating Chinese businesses in times of crisis (WuFlu). But they were proven wrong. Bytedance is dragging its feet on the IPO, because it will be at least $6 billion poorer straight-up, and lose $40 billion (not in revenues, but market capitalization), over the next 5 years.