Time Running Out on TikTok

  • ByteDance is currently preparing for TikTok to conduct a public offering in the United States.
  • TikTok Global will be the company responsible for operating the short video software in the United States.
  • Chinese government said that the TikTok transaction also needs to be approved by Beijing.

In order to prevent TikTok from being banned from operating in the United States, Reuters reported that ByteDance is currently preparing for TikTok to conduct a public offering in the United States. However, in addition to President Donald Trump’s approval, the transaction also needs to be approved by Beijing.

ByteDance Ltd. is a Chinese multinational internet technology company headquartered in Beijing. It was founded by Zhang Yiming in 2012. ByteDance is reportedly worth over US$100 billion as of May 2020.

According to the report on Thursday, if the TikTok transaction, proposed by ByteDance, is approved by the US government, TikTok Global will be the company responsible for operating the short video software in the United States.

Trump said that the US government has had discussions with WalMart and Oracle on the TikTok transaction, but the transaction itself has not changed much.

This remark also made the transaction even more confusing. Competing acquirers WalMart and Microsoft, which had announced their exit, returned in other ways. More details are needed on why TikTok and the three companies cooperate with each other.

In addition to the US’ fight for dominance, the Chinese government said that the TikTok transaction also needs to be approved by Beijing. Previously, Chinese officials have stated that they do not want TikTok to be forced into a transaction case. Experts believe that Beijing’s approval of this matter may complicate the entire transaction.

Trump emphasized on the 16th that he opposed ByteDance’s control of most of TikTok’s management rights in the United States. This has also allowed this transaction to continue to be blocked in the United States, and it is not clear whether Bytedance will report the latest progress of the transaction to China by holding a majority of TikTok shares.

White House Chief of Staff Mark Meadows said that the US government is still reviewing the details of the transaction and continues to determine whether the content of the transaction is in compliance with US national security regulations.

A source told Reuters that the White House and ByteDance have listed investment terms for certain parts of the agreement, but Trump has not approved the entire transaction. According to the contents of the current transaction, Oracle and Wal-Mart will hold approximately 60% of TikTok’s US operations.

According to the investment terms list, Oracle will have the right to inspect TikTok’s source code and require TikTok to make necessary changes to ensure data security. All US user data will be controlled by Oracle.

The current proposal shows that TikTok Global’s board of directors will include a security expert, and this candidate needs to be approved by the US government. His responsibilities will include chairing a security committee to ensure that user data is protected.

In addition, most of TikTok Global’s directors are expected to be American, and there will be an American CEO. The source pointed out that Oracle has agreed to own approximately 20% of TikTok Global. If Wal-Mart also successfully negotiated an acquisition of shares, Wal-Mart’s chief executive officer Doug McMillon will have a seat on TikTok Global’s board of directors.

TikTok Strives to be Listed in the US

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.

ByteDance is currently preparing for TikTok Global’s public offering in the United States. As ByteDance’s investors recently estimated that TikTok is worth more than $50 billion, TikTok’s public offering will be one of the largest companies in the stock market for the first time in the history of the technology industry.

This move will also further reduce Bytedance’s shares in TikTok Global so that US officials who have been asking Bytedance to reduce control of TikTok can be a little relieved.

According to sources, TikTok Global is expected to be officially listed on the American Stock Exchange in a year.

The survey found that about 40% of Americans said that if ByteDance did not sell TikTok to a US company, they supported Trump’s ban on TikTok.

Trump asked ByteDance to terminate its relationship with TikTok in the United States last month because he worried that TikTok would share the personal data of nearly 100 million Americans with the Chinese government.

ByteDance is currently in time to reach an agreement with the White House on the transaction as soon as possible before the ban imposed by Trump takes effect on September 20. Once the ban takes effect, TikTok will be forced to withdraw from the US market.

In the past few months, the US government has promoted the suppression of “untrusted” Chinese software. In addition to TikTok, Trump has also imposed a ban on the use of WeChat transactions.

Earlier this year, the US Foreign Investment Review Committee required the Chinese game company “Beijing Kunlun Wanwei Technology Co., Ltd.” to sell Grindr, a gay dating software purchased in 2016.

Only $1/click

Submit Your Ad Here

Joyce Davis

My history goes back to 2002 and I  worked as a reporter, interviewer, news editor, copy editor, managing editor, newsletter founder, almanac profiler, and news radio broadcaster.

Leave a Reply