Discussions regarding the future of the Chinese video platform TikTok in the United States, led by the White House, are centered around a plan for investors in TikTok's parent company, ByteDance, to acquire TikTok's U.S. business, as reported by Reuters and the Financial Times on the 22nd.
This plan involves spinning off TikTok's U.S. entity and increasing the equity of existing U.S. investors in the spun-off TikTok U.S. entity, while reducing Chinese ownership to below 20% as required by U.S. law. It is reported that Ef YAS of Susquehanna International Group and Bill Ford of General Atlantic are leading discussions with the White House regarding this plan.
According to a source, private equity firm KKR, which is not an existing shareholder of ByteDance, is also participating in these discussions. Additionally, Oracle, a U.S. software company that has been storing TikTok's U.S. user data on servers since 2022, is reported to hold a minority equity stake in the spun-off TikTok U.S. entity and ensure that China cannot access TikTok U.S. user data.
Currently, 60% of ByteDance's equity is owned by BlackRock, General Atlantic, and Susquehanna International, while 20% is held by the company's founders, and the remaining 20% is reportedly owned by employees, which include thousands of Americans.
Previously, the U.S. Congress enacted the TikTok Ban Law in April last year, citing concerns that ByteDance might collect personal data on a large scale, threatening national security. The law was signed into effect by former President Joe Biden, but upon returning to the White House on Jan. 20, former President Donald Trump postponed the enforcement of the TikTok service ban in the U.S. for 90 days through an executive order.