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Chinese govt takes stake, board seat in ByteDance's key local entity

Chinese govt takes stake, board seat in ByteDance's key local entity

The deal does not give the Chinese government any stake in the firm's hit short-video app TikTok because of ByteDance's complex corporate structure

ByteDance said that the Chinese subsidiary referenced in the report only related to some of its China market video and information platforms (Source:Reuters) ByteDance said that the Chinese subsidiary referenced in the report only related to some of its China market video and information platforms (Source:Reuters)

The Chinese government has taken a stake and a board seat in TikTok owner ByteDance Inc.'s key Chinese entity, The Information reported on Monday, citing corporate records and people with knowledge of the matter.

On April 30, Beijing ByteDance Technology sold a 1% stake to WangTouZhongWen (Beijing) Technology, which is owned by three state entities, The Information reported, citing Tianyancha, an online database of China's corporate records. The deal also allowed the Chinese government to appoint a board director at Beijing ByteDance, it added, attributing it to two people with knowledge of the arrangement.

The deal does not give the Chinese government any stake in the firm's hit short-video app TikTok because of ByteDance's complex corporate structure, The Information said.

ByteDance told Reuters the Chinese subsidiary referenced in the report only related to some of its China market video and information platforms, and held some of the licences they require to operate under local law.

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Published on: Aug 17, 2021, 2:16 PM IST
Posted by: Mohammad Haaris Beg, Aug 17, 2021, 2:07 PM IST