ByteDance investors are in talks to bid for short-video platform TikTok using their stakes in the Chinese tech firm to finance the move, Reuters reported, citing people familiar with the matter.
Photo credit: ByteDance
These investors are looking to exchange their stakes in the parent firm for equity in the TikTok assets that are for sale, which could be valued between US$25 billion and US$30 billion, the sources said.
Some of ByteDance’s investors, including General Atlantic, are competing to take a majority stake in the TikTok assets. Under their plan, Microsoft and Oracle could get a minority stake in the assets, added the sources.
This move may face hurdles since US President Donald Trump has said that he would prefer a major US company to lead the TikTok deal, according to the sources. Any deal that ByteDance may reach will also be under the supervision of the Committee on Foreign Investment in the United States, a US government panel.
Earlier this month, tech giant Microsoft confirmed that it would continue exploring the purchase of TikTok and was aiming to complete the discussions by September 15. Oracle, on the other hand, is reportedly approaching other parties, including Sequoia Capital, to acquire TikTok’s operations in the US, Canada, Australia, and New Zealand.
Microsoft, however, is still the dominant buyer because of its large cash reserves and technical capabilities to design new algorithms for TikTok, separate from ByteDance, the sources said.
Meanwhile, TikTok last week said it would file a lawsuit against the Trump administration over its executive order banning any transactions with the app and ByteDance.
Editing by Jaclyn Teng
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