TikTok is Nearing a Deal to Sell Its US Operations in Upcoming Days

August 27, 2020 10:30 pm

Beijing (PingWest)—ByteDance, parent company of TikTok, will likely sell the short video app's US operation within the upcoming days, CNBC reported on Thursday citing sources familiar with the negotiations.

Kevin Mayer's swift exit as TikTok CEO comes not only amid a rapidly changing political environment surrounding the company's US operations but also after he was left out of ByteDance's deal talks with Oracle and Microsoft, according to CNBC.

Meyer used to be the top executive of Walt Disney's streaming business and was hired by ByteDance in May as TikTok's CEO and ByteDance's COO.

Vanessa Pappas, the head of TikTok’s US business, will run TikTok following Mayer’s departure, the company said in an internal memo to employees.

According to an Aug. 6 executive order, which says the app’s current ties to China make it a national security threat, the sale must be completed by Sept.15 or the app could be banned in the US.

While Microsoft has appeared to be in the lead for the deal for several weeks, TikTok hasn't yet chosen a buyer and is still talking with the Oracle. Walmart has been working with SoftBank on a potential acquisition, but that offer doesn’t include a cloud technology backbone component, which is likely a non-starter with the US government, according to the report.

Talks with Microsoft were led by ByteDance CEO Zhang Yiming, CNBC says, while talks with Oracle were led by General Atlantic CEO Bill Ford, with Zhang's participation.