ByteDance, TikTok’s parent company said that TikTok Global will soon launch a public offering of shares in order to enhance the governance structure and transparency for the firm, which will eventually control the organization’s U.S operations.
According to the parent company, a pre-IPO round will also be conducted by TikTok, which will leave ByteDance with only an 80% stake in TikTok. The organization also added that TikTok Global’s board of directors includes the Founder of ByteDance Zhang Yiming and Walmart’s Chief Executives and the present Directors of ByteDance.
However, the current plan doesn’t involve any kind of Algorithm or technology transfer. But as per ByteDance, Oracle has the security access to TikTok’s security codes.
ByteDance also added that a $5 billion payment to be made to the U.S Treasury by TikTok Global is completely based on the estimated income and other taxes the company needs to pay over the course of the next few years, which has nothing to do with the deal that has been agreed upon with Oracle and Walmart.
Earlier on Sunday, A U.S judge blocked the administration’s order of removing Chinese owned app WeChat for downloads from Google and Apple’s app store.
On Friday the U.S Commerce Department had issued an order on the grounds of national security to block the messaging app from U.S app stores.
Currently, as much as 100 million and as much as 19 million Americans use TikTok and WeChat respectively. WeChat the messaging app is mainly popular amongst the Chinese students and few Americans who have a personal or business relationships with China.
