TikTok set for IPO and eyes new CEO

TikTok’s US business is reportedly set for an IPO after it is purchased

The news comes after president Trump seemingly rejected the prospect of Larry Ellison’s enterprise software company Oracle buying the company without directly operating the business. Oracle said that it has reached a deal, but it only wants a stake in the company and to operate as its cloud provider.

TikTop parent company ByteDance is facing a race against time to find a new home for its social media network’s US operations following a promised ban from president Trump. The administration has ordered ByteDance to “divest its ownership” amid concerns over data privacy. The Trump administration initially set a September 15 deadline for a deal, but that was extended to November 12.

Now the Wall Street Journal has reported that TikTok – separated from ByteDance – would be required to file for an IPO on a US stock exchange within a year of being bought by a US company.

The short-form video social media app has also reportedly held talks with Instagram co-founder Kevin Systrom to take over as CEO following the resignation of Kevin Mayer who spent less than six months in the job.

TikTok is in the process of suing the Trump administration, arguing that the insistence on divestment is “not based on a bona fide national emergency and authorises the prohibition of activities that have not been found to pose ‘an unusual and extraordinary threat.”