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| ByteDance investors want to acquire TikTok |
ByteDance investors are discussing how they could use their stake in a Chinese tech company to fund their bid for the popular short video app TikTok.
ByteDance is currently negotiating to sell its TikTok business in North America, Australia and New Zealand to potential buyers including Microsoft and Oracle.
President (Donald Trump) ordered the Chinese company to cut ties with US social media apps and raised concerns about the security of the personal data it processes.
The source said: Several ByteDance investors, including the investment firm General Atlantic, are competing to acquire large stakes in TikTok's salable assets.
The source added that depending on their restructuring plan, Microsoft or Oracle might acquire a small portion of the assets.
TikTok's assets sold range from $ 25 billion to $ 30 billion. To support the offer, ByteDance investors are discussing exchanging some or all of their shares in the Chinese company for shares in Tik Tok assets.
The source said: The BitDance investor plan faces long-term opportunities and significant hurdles.
Trump administration officials announced that a large US company would manage the TikTok transaction and technically protect the ByteDance app.
A US government commission, the Commission on Foreign Investment (CFIUS), must sign every transaction that ByteDance enters into.
However, some ByteDance investors are pushing for a bigger role in TikTok transactions, confirming their efforts to give Chinese companies more options and avoid quick sales.
Some of them had to convince ByteDance founder and CEO Zhang Yiming to give up Tik Tok, the source said.
Microsoft remains the main buyer of TikTok assets due to its enormous financial and technical ability to develop new algorithms for TikTok, separate from ByteDance and the Chinese Short Video (Douyin) application.
The source added that after Microsoft hopes to sign the deal by September 15th, Microsoft is considering a plan to effectively separate TikTok from ByteDance.
The source said that as part of the long transition period, CFIUS will then monitor the execution of the transaction.
With the spread of trade, trade, Hong Kong, cybersecurity, and the spread of the Corona virus between China and the United States, relations between the two countries deteriorated and TikTok became the center of disputes between the United States, the two largest economies in the world.