The resignation of ByteDance founder Zhang Yiming as CEO of the company has left many surprised.
ByteDance is the company behind hit short video-sharing apps TikTok and Douyin.
Zhang, who created ByteDance in a Beijing residential flat nine years ago, might remain the de facto boss after he officially cedes day-to-day responsibilities to his co-founder and college dormitory buddy Liang Rubo over the next six months.
“Despite quitting the CEO job, Zhang is still ByteDance’s co-founder and major shareholder, or at least he has agreement with the investors that makes him a key person behind ByteDance,” said Xu Xixiong, a professor of management at Chongqing University.
Xu said shedding the title does not mean Zhang is giving up control of key decision making at the company, one of the world’s largest unicorns with a valuation of nearly US$400 billion.
Zhang, 38, is likely to continue wielding power behind the scenes through his equity holdings, as well as via his influence over executives, to ensure strategic continuity of the company, analysts said.
TikTok boss, Zhang Yiming has resigned at age 38 with a net worth of $44billion to spend his time "reading and daydreaming" pic.twitter.com/Tz6Cguzstz
— Naija (@Naija_PR) May 25, 2021
In a letter to ByteDance employees explaining his decision to relinquish the CEO role, Zhang said it was a personal choice, pointing out that he was “not good at managing people” and was not a social person. He also said the job of CEO hindered his personal pursuit of knowledge and study.
In his letter, Zhang did not mention the increased regulatory pressure from the Chinese government, or the recent scrutiny TikTok received from Washington over national security concerns. Zhang’s announcement 10 days ago did not mention any change to his role as chairman of the company’s board of directors. Zhang holds 25 per cent of the company’s shares, according to a report by The Wall Street Journal in September last year.
