ByteDance’s US investors are reviewing a range of options to address US government concerns over TikTok while salvaging their investments, including steps to take voting control of the popular video-sharing app, said people familiar with the matter.
The US lawmakers’ move this week to advance a bill to force a separation of TikTok from Chinese-owned ByteDance over national security concerns has caught investors by surprise, sending them scrambling to respond. ByteDance’s US investors include the likes of private equity firm General Atlantic as well as Susquehanna International Group and Sequoia Capital.
One idea that has gained traction among some of US investors is to stop ByteDance from having a say over how TikTok is run while allowing it to keep its existing stake in the business. Discussions are in the early stages and would need approval from the Chinese government, these people cautioned.