The US government is close to approving an agreement that will allow US investors to acquire operations in the country, taking control of its Chinese owner’s application, a. The information is from the newspaper Financial Times.
The transaction would involve a group of investors, including large funds of private equity Like Andreessen Horowitz and Blackstone, which would own about 50% of the American Tiktok unit.
The sale proposal arises in the midst of a period established by an American law, which comes into force on April 5, requiring Tiktok to be sold to non -Chinese entities to avoid prohibition of the US application.
Read more:
The negotiation is in a preliminary stage and may change, but an official announcement is expected to occur soon, depending on the approval of President Donald Trump.
According to Financial TimesIn addition to new investors, large existing shareholders, such as General Atlantic and KKR, should also acquire stakes in the American unit, totaling approximately 30% of the business.
Continues after advertising
Bytedance, in turn, would maintain a share of less than 20% in the new structure, meeting legislative requirements that limit the control of “foreign opponents”.
A critical point in the negotiations will control the Tiktok algorithm, widely considered a valuable asset.
There are discussions about the possibility of Bytedance to continue to develop and operate the algorithm, while a new American entity would have access to it through a licensing agreement.
Continues after advertising
However, analysts warn that to meet legal requirements, the algorithm must be fully operated by the new entity.
In addition, Amazon made a last -minute offer to acquire the American Tiktok unit, but the proposal of existing investors is still seen as the favorite to realize the business.
