A group of US investors led by General Atlantic and Sequoia is in early talks to acquire a majority stake in TikTok from parent company ByteDance, according to reports.
The carveout would reportedly result in Beijing-based ByteDance retaining a minority interest with non-voting shares in TikTok. The investors are consulting with the Treasury Department and other regulators to form a plan that would alleviate national security concerns, the Financial Times reported.
Other investors, including New York-based private equity firms and tech companies, have reportedly reached out to ByteDance about a deal for the video-sharing app developer.
TikTok has become a lightning rod for criticism from politicians who fear the collection of data on Americans by the Chinese government. In a Facebook ad, President Trump’s election campaign recently claimed that TikTok spies on users and the US Senate is expected to vote on a bill that would ban the app from government-issued devices. TikTok was banned in India last month over national security concerns.
