ByteDance is exploring plans to spinoff its global TikTok operations in the form of an IPO on a US stock exchange, CNBC's David Faber reported on Thursday.
The move could satisfy President Trump's ownership concerns regarding ByteDance and TikTok. Trump said on Wednesday that he doesn't like the idea of Beijing-based ByteDance retaining a majority stake in TikTok. Oracle would own a minority stake in TikTok of less than 20%, while Walmart is also expected to take a stake in the popular social media company, according to Faber.
There would likely be a new US board of directors for TikTok's American operations, with Walmart CEO Doug McMillion expected to have a seat on the board, CNBC reported.
In recent days, Trump has been meeting with cabinet members and advisers like Secretary of Treasury Steve Mnuchin and Jared Kushner on whether or not to approve a proposed TikTok deal with Oracle, according to CNBC.
Billionaire Chamath Palihapitiya told CNBC on Tuesday that the US economy is "not in a great place" and much of the first round of the COVID-19 relief stimulus was "wasted" and "not functionally useful." "That first phase of stimulus ...
A lot of this money got sent to companies, those companies didn't allocate it properly, they still ended up laying off tens, if not hundreds of thousands of employees, just literally the day after the stimulus said that they could," the Social Capital CEO said.
Palihapitiya also said that it's unnecessary to give money to "zombie" companies, or companies that cannot pay off their debts without borrowing more because their profits are near zero.
Instead, he said the US needs to increase the stimulus it sends directly to Americans, because the economy is led by the consumer.