Jul 10, 2020 - Economy

ByteDance rethinks corporate structures for TikTok after political backlash

Illustration of someone cutting a tag off of TikTok

Illustration: Aïda Amer/Axios

ByteDance is considering new corporate structures for its TikTok business, as it comes under political pressure in the U.S. and other countries for ties to China's government, per the Wall Street Journal.

Why it matters: The Beijing-based firm is the world's most valuable privately held tech company, estimated to be worth upwards of $110 billion by direct investors and $150 billion in recent secondary market trades.

  • ByteDance shareholders include General Atlantic, Sequoia Capital China, KKR, Hillhouse Capital, and Yuri Milner.

The bottom line: "ByteDance’s discussions about changing how TikTok is run are still in their early stages, but setting up an independent TikTok management board would allow a degree of autonomy from the parent company," says the Journal.

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