[CNBC Television] TikTok Global plans to file for IPO on U.S. exchange in about a year: Sources
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CNBC’s Julia Boorstin reports on TikTok Global’s plans to file for an IPO in the U.S. in a year or so, according to sources. Subscribe to CNBC PRO for access to investor and analyst insights on TikTok and more:
President Donald Trump is expect to decide on TikTok’s fate in the U.S. in the next 24-36 hours, sources told CNBC’s David Faber.
To address ownership concerns, ByteDance plans to do an initial public offering of global TikTok on a U.S. stock exchange, according to people familiar with the matter. Oracle will also own a minority stake that will be less than 20% of the new global TikTok, two of the people said. Walmart will also take a stake, though its size is still unknown, according to two of the people.
The Treasury Department sent major revisions about security issues on the TikTok/Oracle term sheet Wednesday night, sources told CNBC’s Sara Eisen. ByteDance has fully agreed to those revisions, the sources said, although it’s unclear what the changes entailed.
Trump has been meeting with Cabinet members and other advisers as he decides whether or not to approve the deal, according to others familiar with the matter, who asked not to be named because the talks are private. There are mixed points of views among his advisers, who include Secretary of State Mike Pompeo, Secretary of Treasury Steve Mnuchin and Jared Kushner, the president’s son-in-law, one of the people said.
An initial public offering of TikTok would likely be the largest technology IPO in recent years. Private valuations of the company have been estimated to be about $50 billion. Recent public offerings, such as Snowflake, have added billions of dollars in valuation when stocks hit the public markets.
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