China's ByteDance said on Monday that TikTok Global will launch a public offering of shares to enhance the corporate governance structure and transparency for the firm that will control the video platform's U.S. operations.
ByteDance said in a statement TikTok Global will also conduct a pre-IPO round that will leave ByteDance with an 80% stake in the firm. The firm said TikTok Global's board of directors includes ByteDance founder Zhang Yiming as well as Walmart's chief executive and current directors of ByteDance.
The current plan for TikTok Global does not involve any transfer of algorithms or technologies and Oracle Corp has security access to TikTok U.S.'s source code, ByteDance said.
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ByteDance also said a $5 billion payment reportedly to be made to the U.S. Treasury by TikTok Global is based on estimated income and other taxes the company will need to pay over the next few years and has nothing to do with the deal reached with Oracle and Walmart.
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