Investors from the US are reportedly planning to buy the Chinese video-sharing app from the parent company ByteDance in an effort to save the app's foothold in the North American country. A group of investors, which include venture capital firms Sequoia and General Atlantic area considering buying a majority state, as reported by The Financial Times.
The investors are in talks with the US Treasury Department and other regulators about whether a spinoff of the app is going to end the concerns of the US about the company, as reported by FT. The reports are out during a time when the app is facing scrutiny in Washington and tensions between the US and China have escalated over trade, technology, human rights, and national security. As per FT, ByteDance is going to retain a minority stake in the app under the deal which is being discussed.
US Investors to Buy TikTok?
TikTok did not respond to any questions regarding the matter and referred to an announcement that ByteDance is planning some changes to its corporate structure. "We are very confident in the long-term success of TikTok and will make our plans public when we have something to announce," a TikTok spokesperson mentioned in a statement as quoted by CNN.
Both General Atlantic and Sequoia did not give any fruitful response. In recent times there have been reports that TikTok is planning to shift its headquarters from China as its business is getting affected.
The US State Secretary Mike Pompeo and other US officials had claimed that they are considering banning TikTok. The company also pulled out of Hong Kong this month following the controversial imposing of the national security law by China in the city.
India had banned 59 Chinese apps, which include TikTok after the rising tensions at the Galwan valley. Around 20 Indian soldiers lost their lives in the face-off with the Chinese troops at Ladakh, near the Line of Actual Control (LAC).