TikTok to launch pre-IPO to become 80% owned by Bytedance: statement

TikTok Global is planning to launch a pre-IPO in which Bytedance will retain an 80 percent stake in the company, Bytedance said in a statement on Monday.

"The board of directors of TikTok Global will include Bytedance founder Zhang Yiming, current Bytedance directors as well as the CEO of Walmart," the statement noted.

Bytedance stressed that it will not hand any algorithm or technologies to the US company but noted that Oracle has the authority to conduct security checks on TikTok's source code in the United Sates.

The company also said the US$5 billion payment reportedly to be made to the US Treasury by TikTok Global is based on estimated income tax and other taxes that TikTok will need to pay in the next few years. It has nothing to do with the deal with Oracle and Walmart, the statement added.

On Saturday, TikTok confirmed that it had reached a proposed deal with US companies Oracle and Walmart.