Back in 2009, before Jeff Yass emerged as a prominent Republican donor, his firm, Susquehanna International Group, dabbled in the Chinese real estate market by investing in a tech-savvy start-up called 99Fang. This company boasted an advanced search algorithm designed to assist buyers in finding their dream homes. Interestingly, internal records reveal that employees from a Chinese arm of Yass’s firm played a significant role in shaping 99Fang, even going as far as handpicking the chief executive, who they claimed was not the “real founder.”
While 99Fang’s real estate venture eventually floundered, it sparked something bigger. Former contractors of Susquehanna alleged in a lawsuit that the chief executive of 99Fang, Zhang Yiming, along with the search technology, resurfaced in a different venture backed by Susquehanna: ByteDance. ByteDance, the parent company of TikTok, has become one of the world’s most valuable start-ups, valued at $225 billion, and has landed in the middle of a controversy on Capitol Hill due to concerns about national security.
Court documents have unveiled a convoluted backstory behind the creation of ByteDance and TikTok, shedding light on Susquehanna’s deeper involvement than previously disclosed. The records include emails, chats, and memos from within the firm, detailing a mediocre business experiment, tensions between founders and investors, and the emergence of a powerful search engine in need of a purpose.
As lawmakers mull over the potential risks posed by TikTok, Susquehanna, with tens of billions of dollars at stake, finds itself in the spotlight. The firm’s founder, Jeff Yass, stands to gain or lose billions based on the outcome of this debate. Yass, a former professional poker player, has emerged as the top donor in the current election cycle, contributing over $46 million as of last year.
The unsealed court documents from a Pennsylvania lawsuit have brought to light Susquehanna’s alleged role in the transfer of cutting-edge search technology to ByteDance. The firm denies these claims, asserting that ByteDance did not receive any technology from the real estate site. The records, inadvertently made public and later resealed, have raised questions about Yass’s personal involvement in ByteDance’s formation.
While the legal battle continues, the origins of ByteDance trace back to the real estate efforts of 99Fang. This transition from real estate to social media was a bold move, and the subsequent success of ByteDance highlights Susquehanna’s gamble on an unproven founder paying off immensely.
As the future of TikTok hangs in the balance, the legal proceedings and legislative actions surrounding ByteDance remain uncertain. With potential implications for national security, billions of dollars on the line, and a web of complex relationships, the ByteDance saga continues to unfold.