With value at $100 billion, Bytedance’s investors include global firms like KKR, Tiger Global, Softbank’s Vision Fund, Tiger Global, Sequoia and General Atlantic among others. Most of these companies already have investments in both the US and India and may help the company quell government’s concerns around Chinese spying.
The popular short-video app TikTok has been facing numerous allegations regarding security risks and misuse of user information. Now parent firm Bytedance reportedly looks to reduce its stake in the app. Both The New York Times and The Information reported that the Chinese firm is planning to sell a majority stake to the existing investors, aiming to retain a minority stake in the platform. The move is an effort to quell the possibility of a ban by the US government.
With a nationwide ban decision made in India, not only for Tiktok but two other Bytedance owned apps, Vigo Video and Helo, even the US has cited national security risks. This includes the chances of Chinese apps being a mechanism for Chinese governments to spy on other countries.
Bytedance so far has denounced any claims suggesting its apps are a national security risk, but there have been signs of the company distancing itself from China. Tiktok had earlier pulled out of Hong Kong upon a new law imposition on the country by China. Reports before have indicated that a new board by the company for Tiktok and establishing headquarters outside China has also been considered.
Parent Firm Bytedance Considers Selling Majority Stake of TikTok
