ByteDance investors want to acquire TikTok

Being investors bytes breakdance (ByteDance) talks to use their shares in Chinese technology company to help finance their offer for the application of the famous short video Tech Talk (TikTok).

ByteDance is in talks to sell TikTok operations in North America, Australia and New Zealand to potential acquirers, including Microsoft and Oracle.

President (Donald Trump) ordered the Chinese company to cut ties with the social media app in the United States, citing concerns about the safety of the personal data it handles.

The sources said: Some ByteDance investors, including the investment company General Atlantic, are competing to acquire major stakes in TikTok's sellable assets.

The sources added that under the restructuring plan, Microsoft or Oracle could get a small share of the assets.

The value of TikTok assets offered for sale ranges between $ 25 billion and $ 30 billion, and to help fund their bid, ByteDance investors are discussing exchanging some or all of their stakes in the Chinese company for equity in TikTok assets.

The sources said: The plan of BitDance investors faces long possibilities and great obstacles.

Trump administration officials said they expect a major US company to lead the TikTok deal and technically protect the app from ByteDance.

A US government commission, the Commission on Foreign Investment in the United States (CFIUS), must sign any deal that ByteDance reaches.

However, the push from some ByteDance investors to play a bigger role in the TikTok deal underscores their efforts to give the Chinese company more options and avoid a quick sell.

Sources said: Some of them had to persuade ByteDance founder and CEO Yiming Zhang to give up Tik Tok.

Microsoft remains the main buyer of TikTok assets due to its huge financial capacity and technical ability to design new algorithms for TikTok, which will be separate from ByteDance and the Chinese short video application (Douyin).

The sources added that Microsoft is working on a blueprint for how to effectively separate TikTok from ByteDance after reaching an agreement the company hopes to sign by September 15th.

According to the sources, CFIUS will then monitor the implementation of the deal as part of a long transition period.

With the deterioration of relations between the United States and China due to trade, Hong Kong, cybersecurity and the spread of the Corona virus, TikTok has emerged as a point of contention between the two largest economies in the world.

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