San Francisco, September 18: As a decision on the proposal that TikTok had submitted to the US administration to resolve its security concerns is expected soon, its Chinese parent company ByteDance is planning to launch an initial public offering for the short video-sharing platform, CNBC reported. The move for a TikTok IPO globally on a US stock exchange is aimed at addressing ownership concerns, said the report on Thursday, citing unnamed people familiar with the matter. TikTok Banned in US: TikTok And WeChat to be Removed From All App Stores in United States of America From Sunday, September 20.
Cloud major Oracle earlier this week confirmed that it is part of the proposal submitted by ByteDance to the US Treasury Department over the weekend. Besides Oracle, Walmart will also have a stake in the new global TikTok, according to the CNBC report. While Microsoft, which was seen as one of the front-runners to purchase TikTok’s US operations, on Sunday said that its proposal was rejected by ByteDance, Walmart on the same day said it “continues to have an interest in a TikTok investment and continues discussions with ByteDance leadership and other interested parties.” TikTok Banned in US: Chinese App’s General Manager Vanessa Pappas Urges Facebook, Instagram to Join Campaign Against The Ban.
While Oracle’s stake in the new global TikTok is likely to be less than 20 per cent, the size of Walmart’s stake is far from clear, said the new report. According to a Financial Times report on Tuesday, TikTok is likely to spin off into a separate US-headquartered company as per the arrangements in which ByteDance will have a majority stake and Oracle a minority share. US President Donald Trump said on Wednesday that he does not like the idea of ByteDance having a majority stake in TikTok.
(The above story first appeared on Fool’s Corner on Sep 18, 2020 10:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website foolscorner.com).