A new company allowing Dictok to continue to operate in the United States plans to float in the stock market in an effort to increase transparency and show that the Trump administration will adhere to regulatory oversight.
Dictok Global plans to hold a public listing, its Chinese parent company Byte Dance said on Monday, after announcing a deal over the weekend to avoid stopping the popular app in the US.
Under the deal, which was approved by Donald Trump, US software company Oracle will become the data partner for the video sharing site and Walmart will become the business partner, creating a new US company called Dictoc Global.
As a public company, Dictoc Global is expected to publish quarterly reports and face more public scrutiny at partner meetings. It is subject to greater regulation, as well as market regulation.
On Monday, Bite Dance said in a statement on social media that it would own 80% of Dictoc Global, with the rest floating on the stock market, known as the initial public offering or IPO.
The company added that Dictok Global’s board of directors includes Fight Dance founder Zhang Yiming, its current directors and Walmart CEO Doug Macmillan.
“Dictoc Global will also launch a listing plan to further enhance its corporate management structure and transparency,” the statement said. It does not say how much it intends to raise or which stock market it plans to list.
Citing someone familiar with the matter, Bloomberg News reports that Bidens is seeking a $ 60 billion estimate for Dictok.
Dictok – which has become a global phenomenon with its short, addictive phone videos – has been on fire in recent months as tensions between China and the West escalate.
Trump has said that Dictok will collect user data for Beijing – although he has not yet provided any evidence – and in early August offered Bite Dance until September 20 to hand over Dictok’s U.S. operations to an American company.
Under pressure in China not to submit to US demands, Bite Dance began clarifying “rumors” on Monday after details of the deal were announced. It said the current plan “does not involve changing any methods or technologies”.
Although Oracle has the authority to verify the source code of Dictoc in the United States, Byte Dance said that showing the source code is a way for multinational companies to address local data security concerns.
“Paying $ 5 billion in taxes to the U.S. Treasury” is a forecast of corporate income tax and other operating taxes that Bitcoin Dance will have to pay for business development.