China’s ByteDance and U.S. officials have made significant headway in the TikTok negotiation process, but President Donald Trump has yet to begin considering the terms of the deal. Sources are now reporting that if successful, the new company, TikTok Global, plans to go public on the US stock market within a year.
Reuters reports that ByteDance is now actively discussing with the US side the capital structure of TikTok Global, which will manage TikTok’s US operations. Oracle should receive about 20%, and together with the American investors ByteDance and taking into account the possible participation of Walmart, this share may be 60%. Donald Trump has already made it clear that he is not ready to approve the deal, under which ByteDance will retain the bulk of the capital.
In the course of negotiations with US officials, the source explains, other terms of the possible deal were determined. TikTok Global’s board of directors should be made up of US citizens, with a special information security representative who will chair the relevant committee and be appointed by the US authorities. Walmart CEO Doug McMillon may join the board of directors of TikTok Global, and according to unofficial data, one of the founders of Instagram, Kevin Systrom, may take the post of the head of the company.
As noted the day before, Oracle will be able not only to store the data of American TikTok users on its servers, but also to analyze the service code and all updates in order to exclude spying by Chinese developers. At the same time, ByteDance expects to retain control over key algorithms, which will allow it to receive approval of the deal from the Chinese authorities, even if the company’s share in the capital of TikTok Global is minority.
Interestingly, Donald Trump spoke about the possible participation of Microsoft in the deal, although earlier the negotiators stated that it had dropped out of the process. According to unofficial data, within a year after the formation of the company, TikTok Global plans to go public on the American stock market, which will further reduce the share of ByteDance in the capital, and to some extent will also satisfy the requests of the American authorities in the field of financial control over the activities of the service. in the USA. At this stage, the capitalization of TikTok is estimated by investors at $ 50 billion, if the IPO is guided by this bar, it will become one of the largest in the sector. The President of the United States must make his decision on the deal by September 20, inclusive, since in the absence of an agreement with ByteDance after this date, TikTok will be banned in the United States.
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