ByteDance’s globalization strategy is challenged like never before. On July 23rd, Bloomberg reported that a number of venture capitalists had recently urged Byte Dance founder Zhang Yiming to sell a majority stake in TikTok, but so far Zhang has rejected the offer. Some ByteDance venture capitalists, including Sequoia Capital, have urged Mr Zhang to sell a majority stake in TikTok, according to Bloomberg. TikTok could therefore become a Us company, while Byte Dance retains a minority stake.
According to a person involved in the negotiations, the proposal has been under discussion for months, repeated several times, and repeatedly pushed back, with candidates including a group of venture capital firms or strategic partners to buy additional stakes.
In response, Byte Dance told reporters that it would not comment on market rumors. Sequoia Capital also declined to comment.
TikTok is A short video application by ByteDance focused on overseas markets. Since its launch in 2018, TikTok has become one of the world’s most popular apps. By-April 2020, ByteDance’s TikTok and Shake’s global downloads exceeded 2 billion, according to Sensor Tower.
But TikTok’s Chinese background has recently come under intense political pressure abroad.
In the Indian market, the local government announced on June 29th that it had banned 59 Chinese applications, including TikTok and WeChat, for “security” reasons. In the United States, July 8, Bloomberg reported that U.S. President Donald Trump said his administration is considering banning the short video app TikTok in the United States.
Against this background, it is difficult for ByteDance to continue to gain a foothold in overseas markets.