The company’s regulatory team and deal negotiators are in discussions to see if it's still possible to craft a sale that can win approval from both governments, an acquirer, venture investors and ByteDance itself.
A little after President Donald Trump's threat to ban the US operations of TikTok, the parent company ByteDance is left with either selling it for $20-30 billion, or walking empty-handed.
According to a report by Bloomberg, China also hinted that it would get involved in any deal’s approval. This has led ByteDance founder Zhang Yiming to reconsider his options and weighing the implications of Beijing’s involvement, sources familiar with the matter have said.
The company’s regulatory team and deal negotiators are in discussions to see if it's still possible to craft a sale that can win approval from both governments, an acquirer, venture investors and ByteDance itself, said one of the people on condition of anonymity.
Beijing’s last-minute entry into the process raises the odds that Zhang will hold on to the US operation beyond the stated American deadlines or even back out of a deal altogether.
It’s likely the need for approval in Washington and Beijing -- along with the already complex negotiations -- will push any final deal beyond the November elections in the US in any case, a person familiar with the matter has said.
According to sources, talks remain fluid and it’s still possible Zhang will proceed with a sale. It is also possible that he could also negotiate a deal with an acquirer, then not complete the transaction because of government demands.
Once the sale is complete, Zhang will relinquish control over upwards of a 100 million users in the US when he is on the cusp of monetising that base, the report said.
Beijing’s involvement could end up benefiting Zhang. China’s assertion that its regulators will weigh in on any TikTok asset sale could give Zhang a possible out, said Ding Chenling, a tech entrepreneur who said he has known the ByteDance founder for half a decade.
It could take up to 30 days for Beijing to greenlight ByteDance’s application to sell tech to a foreign acquirer, which means it may well pass Trump’s target for banning TikTok, Chenling added.
Microsoft and Oracle have already gone into deep negotiations to buy the US operations of TikTok, while seeking approval from Washington.