ByteDance IPO delayed over US-China tensions – report
ByteDance LTD has decided to delay its initial public offering (IPO) plan over problems in creating business structures that meet regulatory requirements in the United States and China at the same time, sources familiar with the matter told South China Morning Post on Saturday.
One of the unnamed sources told the publication that unfavorable relations between the two countries could disrupt the public offering, considering that the IPO plan involved the US market and Wall Street investors. Furthermore, allegedly complications also arose because of the challenges in separating Douyin’s China operations from TikTok’s global ones, considering they share the same algorithm. The report also noted that multiple demands from various stakeholders made it hard to create a consensus on the IPO plan.
ByteDance submitted documents starting the IPO procedure on the Hong Kong Stock Exchange earlier this month.
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