A group of US technology investors have launched an ambitious plan to acquire tiktok, a short video app, from Chinese owners. Investors, led by venture capital firms general Atlantic and Sequoia Capital, are discussing matters with the US Treasury and other regulators to assess whether tiktok can be acquired from Chinese owner byte jump, two people familiar with the matter said.
one of the people familiar with the matter disclosed that after the acquisition, byte hopping will retain a minority stake in tiktok, but has no voting rights. The byte tiktok currently has TikTok and the “sister application” in mainland China. “This is the only viable plan [to ensure tiktok’s smooth development in the United States],” the person said
other investors, including several private equity firms in New York and several technology companies in Silicon Valley, have also approached byte hop and its founder, Zhang Yiming, about the potential deal of tiktok, the report said. But no one of them is as deep as transatlantic investment and Sequoia Capital, according to relevant sources. One of the investors added that byte hopping was reluctant to share its technology with competitors.
at present, tiktok is facing severe challenges in the United States. Industry insiders say there are still some problems to be solved before a potential deal can be reached. For example, byte jump acquired in 2017 Musical.ly The deal is under review by the US Council on foreign investment (CFIUS). One person involved in a potential bid acknowledged that this was one of the risks.
the U.S. Treasury Department (CFIUS’s governing body) declined to comment on the report, as did pan Atlantic investment and Sequoia Capital.
it is not clear at what price these potential investors will buy tiktok. In the last financing in 2018, byte jitter was valued at $75 billion. At present, most of the profit from byte beating is from tiktok. “It’s still very young, and it’s in the early stages of monetization,” said one of the investors. This is a unique asset. ”
tiktok said: “we publicly announced two weeks ago that we were evaluating the company structure changes in tiktok’s business. Since then, we have received a lot of suggestions from outside. We don’t comment on rumors or speculation. We are very confident in tiktok’s long-term success. ”
tiktok announced on Tuesday that it plans to recruit 10000 employees in the United States over the next three years. So far this year, tiktok’s U.S. jobs have nearly tripled, from nearly 500 on January 1 to about 1400. (Li Ming)