Clicky

Beijing takes stake, board seat in ByteDance’s key China entity – The Information

SHANGHAI, Aug. 16 (Reuters) – The Chinese government has acquired a stake in and board seat in TikTok owner ByteDance’s main Chinese entity, Beijing ByteDance Technology, The Information reported Monday, citing company records and people with knowledge of the matter .

Beijing ByteDance Technology sold a 1% stake in WangTouZhongWen (Beijing) Technology on April 30, which is owned by three government agencies, the news agency said, citing Tianyancha, an online database of Chinese company records.

The deal also allowed the Chinese government to appoint a board director at Beijing ByteDance, she added, attributing it to two people who knew about the deal.

The deal does not give the Chinese government a stake in the company’s successful TikTok short video app due to ByteDance’s complex corporate structure, according to The Information.

ByteDance told Reuters that the Chinese subsidiary mentioned in the report only relates to some of its video and information platforms for the Chinese market and has some of the licenses it needs to operate under local law.

Reporting by Yingzhi Yang and Brenda Goh; Adaptation by David Evans and Jonathan Oatis

Our standards: The Thomson Reuters Trust Principles.

-