The infamous Chinese app, TikTok, seems to disregard the possible partnership with Oracle as is considering an IPO.
Its parent company, #ByteDance is considering taking #TikTok public through a brand-new corporate entity if the White House approves the deal. According to people familiar with the matter, the new company will be named TikTok Global. Also, following Reuters' information, the IPO could take place a few years from now on a US stock exchange.
Oracle, the possible partner of TikTok, is said to have a stake in the new entity. It stated that it is part of a consortium to acquire the Chinese app, but as new rules are enforced in China, it will be difficult for the company to receive TikTok's algorithms.
The partnership between the two is still under scrutiny at the White House, given the fact that President Trump suggested that he won't accept a deal that will allow ByteDance to have the majority stake in TikTok if the deal goes through.
If the IPO is happening, it could be among the largest in the tech sector, considering the fact that its investors recently valued the app at over $50 billion.
Following the news, Oracle closed the trading session 0.41% lower, but it managed to wash off the losses during today's pre-market session by gaining more than 1%.
Read more about the possible partnership between Oracle and TikTok, and what China has to say about it here!
Sources: thestreet.com, economictimes.indiantimes.com, finance.yahoo.com