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ByteDance founder Zhang Yiming reconsiders TikTok options after new China rules
- ByteDance’s regulatory team and deal negotiators are said to be discussing whether it is still possible to craft a sale that can win approval from both Beijing and Washington
- The need for approval from the two governments could push any final deal beyond the November elections in the US
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As US President Donald Trump threatened to ban the operations of hit short video app TikTok in America, Chinese parent ByteDance’s choices seemed to be limited to selling the business for US$20 billion to US$30 billion or leaving empty-handed.
But after China signalled it will get involved in any deal’s approval, ByteDance founder Zhang Yiming is reconsidering his options and weighing the implications of Beijing’s involvement, according to people familiar with the matter.
The Beijing-based company’s regulatory team and deal negotiators are huddling to discuss whether it is 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, asking not to be named because the matter is private.
Microsoft Corp and Oracle Corp have been deep in negotiations to buy TikTok’s US operation, submitting proposals while seeking reassurances from Washington that the Trump administration would bless their purchases. Microsoft is working on its bid with Walmart, while Oracle has won support from venture backers such as Sequoia Capital.
But Beijing’s last-minute entry into the process raises the odds that Zhang will hold on to TikTok’s US operation beyond the stated American deadlines or even back out of a deal altogether. It is 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.
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