![]() This is a common arrangement for companies operating news and information platforms in China. As such, an entity affiliated with the Chinese government owns 1% of a ByteDance subsidiary, Douyin Information Service Co., Ltd. Myth: The Chinese government has a "golden share" interest in ByteDance Ltd.įact: As is required under Chinese law, in order to operate certain news and information products that are offered exclusively in China, media licenses are required for those services. Philippe Laffont, Coatue Management (U.S.-based).įour out of five of the board's directors represent ByteDance's investors on the board, and Rubo Liang, ByteDance CEO, represents the company and its employees.Bill Ford, General Atlantic (U.S.-based). Arthur Dantchik, Susquehanna International Group (U.S.-based).Rubo Liang, ByteDance Chairman and CEO (Singapore-based).ByteDance's board of directors is comprised of five individuals, none of whom is a part of any government or state entity. Myth: There is a member of the Chinese government on ByteDance's board of directors.įact: This is not accurate. ByteDance does not have a single global headquarters. That is in keeping with ByteDance's approach to aligning business needs to the markets where its services operate. Myth: TikTok and ByteDance are headquartered in China.įact: TikTok, which is not available in mainland China, has established Los Angeles and Singapore as headquarters locations to meet its business needs. ![]() The remaining twenty percent is owned by the company's founder, who is a private individual and is not part of any state or government entity. An additional twenty percent of the company is owned by ByteDance employees around the world, including Australians. was founded by Chinese entrepreneurs, but today, roughly sixty percent of the company is beneficially owned by global institutional investors such as Carlyle Group, General Atlantic, and Susquehanna International Group. “Amid increased scrutiny around data capture, even within its own app, TikTok may remain at a product disadvantage versus its rival social media platforms in the US,” the analysts wrote in a note last Wednesday.Myth: TikTok's parent company, ByteDance Ltd., is Chinese owned.įact: TikTok’s parent company ByteDance Ltd. This means ByteDance – and Mr Zhang – may have more tough times ahead. Bloomberg Intelligence estimates that the US business could be worth US$40 billion to US$50 billion alone.Īny TikTok sale or spin-off would amount to a technology export and require administrative approvals from China, a spokesman for the nation’s Ministry of Commerce told reporters before Mr Chew’s congressional testimony.īyteDance itself is unlikely to give up its US arm easily, given that its algorithm is the basis for its lucrative business and TikTok probably has a shared code base with the group’s other apps, according to Bloomberg analysts. While Mr Chew stressed that TikTok has committed US$1.5 billion to strengthening controls over its user data security, the firm’s leadership is considering separating from its Chinese parent, although that would be the last resort, people familiar with the matter have said. Like many of its rivals, ByteDance was forced to curtail some of its riskier expansion projects – including in gaming and venture investment – under Beijing’s intensified scrutiny.īut the mounting US concerns over China’s influence have taken a toll on ByteDance.
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