TikTok Global, the offshoot of TikTok that would be formed if Oracle’s bid for the app’s American business is approved, would look to file for an initial public offering (IPO) in about a year, a person familiar with the company told TheWrap on Thursday.
CNBC’s Julia Boorstin was the first person to report the news. It’s unclear which U.S. exchange TikTok Global would be listed on, but the tech-heavy Nasdaq would appear to be the favorite.
Oracle’s bid to become TikTok’s “trusted technology partner” in the U.S. is currently being reviewed by federal officials. If the deal gets the green light, Treasury Secretary Steve Mnuchin said earlier this week it would lead to a new wing of the company dubbed TikTok Global. (TikTok is owned by Beijing-based ByteDance.) The deal would also lead to about 20,000 new American jobs, Mnuchin said.
Whether or not Oracle’s bid is approved by the government is hanging in the balance right now, though. Oracle becoming TikTok’s “trusted technology provider” may not go far enough to address the government’s concerns TikTok poses a national security threat — something several lawmakers have already raised concerns about.
Further, President Trump on Wednesday said he wasn’t a fan of any deal that leaves Bytedance with a majority stake of TikTok’s U.S. business.
“Conceptually, I can tell you, I don’t like that,” Trump said. “If that’s the case, I’m not going to be happy with that.”
His comments came a day after saying the two sides were “close to a deal,” with the president adding Oracle co-founder Larry Ellison was a ‘terrific guy.” Oracle and Ellison’s close ties to the White House, as TheWrap previously reported, were seen as an advantage in the company’s maneuvering to beat out Microsoft for TikTok’s American operations.
The Information earlier this year reported TikTok would bring in about $500 million in U.S. revenue in 2020. If Oracle’s deal gets approved by the government, advertising experts told TheWrap this week that figure could spike higher; you can read the full story by clicking here.