A deal to keep TikTok operational in the United States is inching forward.
US regulators have tentatively agreed to a deal with the app’s Chinese parent company, ByteDance, and its American partner, Oracle, a person familiar with the matter told CNN Business.
If the arrangement gets a formal green light, ByteDance would continue to be the majority shareholder in the short-form video app, the person said. TikTok would also become a global company with headquarters in the United States, while Oracle will host TikTok’s user data and review TikTok’s code for security. The deal is meant to satisfy the US government’s national security concerns about the app.
Under the proposal, the US government would approve members of TikTok’s board; one board member is to be an expert in data security and would hold a top-secret security clearance, according to the person. That appointee would also be responsible for chairing a security committee whose members would be US citizens individually approved by the US government, the person said.
The new global company is expected to file for an initial public offering in about 12 months, the person said, with plans to be listed on a US stock exchange.
Walmart may also still have a role to play in the deal as a possible minority investor and e-commerce partner, the person said, but no final decision has been made. If it were to become a minority investor, Walmart would likely get a seat on the board, according to the person.