SHANGHAI, Aug 16 (Reuters) – The Chinese authorities has taken a stake and a board seat in TikTok owner ByteDance’s vital Chinese entity, Beijing ByteDance Engineering, The Details reported on Monday, citing corporate records and individuals with awareness of the matter.
Beijing ByteDance Technological know-how sold a 1% stake in an April 30 deal to WangTouZhongWen (Beijing) Technology, which is owned by three state entities, the media outlet said, citing Tianyancha, an on the web database of China’s corporate records.
The deal also authorized the Chinese govt to appoint a board director at Beijing ByteDance, it included, attributing it to two folks with knowledge of the arrangement.
The offer does not give the Chinese government any stake in the firm’s hit brief online video application TikTok simply because of ByteDance’s complex corporate structure, The Facts mentioned.
ByteDance instructed Reuters the Chinese subsidiary referenced in the report only similar to some of its China current market movie and facts platforms, and held some of the licences they have to have to function underneath community regulation.
Reporting by Yingzhi Yang and Brenda Goh enhancing by David Evans and Jonathan Oatis
Our Specifications: The Thomson Reuters Trust Ideas.