ByteDance US Backers Say China Growth to Counter TikTok Ban Harm

As TikTok fights to keep its popular video app available in the US, investors in parent company ByteDance Ltd. are being forced to re-evaluate financial prospects for a business valued at more than $300 billion as recently as late last year.

Some of these American shareholders argue that, while a ban will take a near-term toll on their stakes, ByteDance’s China business is the real driving force behind the lofty valuation and an eventual payday.

That’s because roughly 80% of Beijing-based ByteDance’s revenue comes from China and products like Douyin, a TikTok lookalike specifically for the Chinese market. And while ...