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Bytedance to increase its board size to nine seats — SCMP

September 28, 2022 3:47 pm

ByteDance, owner of TikTok and China’s internet giant, will increase the size of its board from the current five to nine, according to SCMP, quoting an anonymous source who said the move was approved in an investor meeting on Tuesday.

Currently, ByteDance’s board consists of Liang Rubo, the company’s CEO, and representatives from General Atlantic, Sequoia Capital, Coatue Management, and Susquehanna International Group — all four are major investors of the company.

It is unclear whether or not current board members will be replaced or who will join the board in the future.

ByteDance’s move comes as the company faces scrutiny from the U.S. regulators over data security. Earlier this week, ByteDance reportedly reached a preliminary agreement with the Biden administration on the issue, which allows the company to operate TikTok in the U.S. without selling, per New York Times. The preliminary agreement includes letting Oracle store TikTok’s U.S. data and monitor TikTok's algorithms, as well as adding a security expert board that reports directly to the US government.

Previously, ByteDance’s U.S. operations have long been hindered by the CFIUS's investigation, which was launched on November 1, 2019. In 2020, TikTok tried to separate TikTok US from its parent company ByteDance by selling the operation entirely. Oracle and Microsoft were two high-profile potential buyers of the acquisition deal. While ByteDance’s founder Zhang Yiming has amicable relations with Microsoft due to having worked at Microsoft in the past, major investors Sequoia and General Atlantic lent support to Oracle.