National Post (National Edition)
Bytedance plan for U.S. TikTok includes IPO
DEAL WITH ORACLE
The new U.S. company that TikTok's owner Bytedance Ltd. plans to form with Oracle Corp. intends to hold an initial public offering in about a year, according to people familiar with the matter.
The new company, called TikTok Global by Treasury Secretary Steven Mnuchin, will be the result of a transaction forced by President Donald Trump last month due to national security concerns about TikTok's Chinese ownership. Bloomberg News reported earlier that the Treasury Department, Bytedance and Oracle agreed to terms for the deal late Wednesday.
Mnuchin sent Bytedance a revised terms sheet late Wednesday and the company and Oracle accepted it. People familiar with the matter described the government's changes as addressing national security concerns about the transaction and asked not to be identified because of the sensitivity of the matter.
Bytedance is trying to win U.S. approval for a transaction with Oracle that would leave the Chinese-headquartered parent company with majority ownership of TikTok.
Any deal needs to be approved by both Trump — who could still reject the transaction — and the Chinese government, where officials have accused the U.S. of “economic bullying.”
White House senior adviser Jared Kushner is aware of the revised terms but hasn't reviewed the latest details in depth and hasn't weighed in on whether Trump should sign off on the deal, one person familiar with the matter said.
The White House, Treasury and TikTok declined to comment.
China's Foreign Ministry Spokesman Wang Wenbin urged the U.S. to “provide an open, fair, just and non-discriminatory business environment for foreign companies operating in the U.S.” during a briefing.
White House Chief of Staff Mark Meadows said early Thursday that he's concerned that Oracle's bid for TikTok may be a “repackaging” that won't meet the president's goals.
Under the plan, Oracle would acquire a minority stake in a newly formed TikTok that would be headquartered in the U.S. with an independent board approved by the U.S. government.
The new terms, which are designed to protect the data of U.S. citizens from falling into Chinese hands, include 20 pages of detailed provisions over data and national security, the people said. Under those terms, the board of directors would have to consist entirely of U.S. citizens and would include a national security committee.
That body would be chaired by an American data-security expert who would be the primary contact with the Committee on Foreign Investment in the U.S., which would oversee any issues of concern to the U.S. government.