All eyes are now on President Donald Trump as he is expected to decide the fate of TikTok in the U.S. in the next 24-36 hours.
In a report credited to CNBC News, ByteDance, owners of TikTok, is planning to go for an IPO for global TikTok on an American Stock Exchange.
Under the proposed plan, waiting for President Trump’s approval include, Oracle owning a minority stake that will be lower than 20% of the new global TikTok.Walmart the world’s biggest retailer by revenue will also take a stake, though its amount remains unknown.
While the Chinese authorities have asserted it’s right to obstruct the sale of vital technologies, it is likely to approve the deal as long as it doesn’t involve the transfer of the artificial intelligence algorithms that drive TikTok’s service. Even if ByteDance were to cede its major ownership over TikTok.
U.S President recently disclosed he was against any idea that ByteDance( parent company) would retain a majority stake in TikTok.
“From the standpoint of ByteDance we don’t like that,” Trump spoke on the Chinese company retaining a majority stake in the business. “I mean, just conceptually I can tell you I don’t like that.”
An IPO on TikTok would most likely be the biggest technology IPO in recent times. Private valuations of the fast-growing startup have been estimated to be worth about $50 billion.
Back Story; Recall DGN about a month ago reported on how President Trump issued directives banning any U.S. transactions with Chinese tech firms that include Tencent and ByteDance.
According to Trump, “WeChat “automatically captures vast swaths of information from its users. This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.”
He went on to say that the application also captures personal information of Chinese nationals visiting the U.S.