TikTok Global plans to file for IPO on U.S. exchange in about a year: Sources
ByteDance prepares US IPO for new company TikTok Global
China’s ByteDance plans to host an initial public offering in the US of TikTok Global, a new company that will operate the popular video app if the US government approves of its proposed deal.
This IPO could be the largest technology placement in recent years. Experts evaluate the company about $ 50 billion.
ByteDance is in a hurry to strike an agreement with the White House that will prevent a ban on TikTok from operating in the United States. According to the president’s threats Donald Trump – it could happen next week.
Last month, he suggested that ByteDance ditch TikTok in the US. Washington fears that personal data of hundreds of millions of Americans using this application could be transferred to the Chinese government.
The day before, Trump reiterated that he opposes ByteDance retaining a controlling stake in TikTok.
White House and ByteDance agree on some aspects of the deal, although Trump has not yet approved it. Major American investors ByteDance, Oracle Corp and, likely, Walmart Inc, will own at least 60% of the American business TikTok.
ByteDance plans TikTok IPO to win deal, sources say
Trump also dropped his demand for the government to turn over the bulk of the deal. His lawyers told him it was illegal.
«Surprisingly, it turns out that we have no right to do this.», – Trump said.
Chief of Staff of the White House Mark Meadows stated that the situation is still unstable.
«At the moment, there is no specific proposal that the president should consider or reject», – he told reporters.
The board of directors of the new company, called TikTok Global, will be predominantly American, as well as a representative of the security council. It is known that the executive director will also be from the United States, sources told Reuters. According to their information, Oracle agreed to own 20% of the company. If Walmart also successfully negotiates the acquisition of the stake, its CEO Doug McMillon will receive a seat on the board of directors of TikTok Global.
Trump said his administration spoke to Walmart and Oracle the day before, but that did not produce much.