ByteDance says TikTok Global plans public offering to enhance governance structure

The headquarters of ByteDance, the parent company of video sharing app TikTok, is seen in Beijing. (AFP)

China’s ByteDance said on Monday that TikTok Global will launch a public offering of shares to enhance the corporate governance structure and transparency for the firm that will control the video platform’s US operations.

ByteDance said in a statement TikTok Global will also conduct a pre-IPO round that will leave ByteDance with an 80 percent stake in the firm. The firm said TikTok Global’s board of directors includes ByteDance founder Zhang Yiming as well as Walmart’s chief executive and current directors of ByteDance.

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The current plan for TikTok Global does not involve any transfer of algorithms or technologies and Oracle Corp has security access to TikTok US’s source code, ByteDance said.

ByteDance also said a $5 billion payment reportedly to be made to the US Treasury by TikTok Global is based on estimated income and other taxes the company will need to pay over the next few years and has nothing to do with the deal reached with Oracle and Walmart.

US President Donald Trump said on Saturday he supported a deal in principle that would allow TikTok to continue to operate in the United States, even as it appeared to conflict with his earlier order for China’s ByteDance to divest the video app.

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Last Update: Monday, 21 September 2020 KSA 04:47 - GMT 01:47
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