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TikTok Parent In Talks With US To Retain Part Ownership Of Video App: WSJ

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TikTok Parent In Talks With US To Retain Part Ownership Of Video App: WSJ

China’s ByteDance Ltd, the parent company of TikTok, is in talks with the United States government with the aim of retaining part ownership of the short-form video app, the Wall Street Journal reported Wednesday.

What Happened: Discussions revolve around multiple options, including a sale or a partial sale that is likely to involve the restructuring of the video app, people familiar with the matter told the Journal.

Government officials taking part in the talks are mainly concerned about the security of TikTok data and making it inaccessible to the Chinese government, the sources told the Journal.

A Treasury Department official said that the focus of that department at “this time on discussions associated with the sale of TikTok in accordance with the August 14 divestiture order signed by the President.”

Why It Matters: Authorities in China have imposed new regulations on technology exports that sets hurdles in the way of any company trying to acquire the ByteDance video app.

Microsoft Corporation (NASDAQ: MSFT), Oracle Corporation (NYSE: ORCL), and Twitter Inc (NYSE: TWTR) are major tech players looking to purchase TikTok.

Walmart Inc (NYSE: WMT) has partnered with Microsoft in pursuit of the Chinese app.

Meanwhile, ByteDance investors Sequoia, General Atlantic are supporting Oracle’s acquisition bid for TikTok.

Representatives of Sequoia, General Atlantic, and Coatue Management, also a TikTok investor, met with representatives of the Central Intelligence Agency last week to discuss data security, the Journal noted.

Twitter Chief Financial Officer Ned Segal refused to deny interest in acquiring the app on Tuesday in a televised interview with CNBC.

Last month, TikTok CEO Kevin Mayer resigned, saying the government’s push drove his decision to quit.

 

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