Mayer’s exit signals TikTok deal at hand

New Delhi | Mumbai: TikTok– owner ByteDance is “moving quickly” to resolve issues both in the US and in India, its founder Zhang Yiming told employees on Thursday, as he sought to calm turmoil within the world’s most valuable startup following the resignation of its chief executive officer Kevin Mayer. In the letter, Yiming wrote that while he “cannot share more details”, the “solution” will be in the interest of “users, creators and partners”. ET reviewed the contents of the letter where Yiming also thanked Mayer for his “efforts towards a resolution”. Mayer’s exit signals a likely conclusion of a deal to sell Tik-Tok, according to a person aware of the development. “An announcement is likely sooner than expected and could come as early as next week,” the person told ET.People in the know said the upcoming resolution perhaps “reduces his role in the new scheme that is expected to be announced soon”. Yiming also thanked Mayer for joining at a time when the company was entering its “most challenging moment in India and the US in particular”.RELIANCE OUTREACHMayer’s resignation as the CEO of TikTok could add a new twist to the Chinese video app's outreach to Mukesh Ambani-controlled Reliance Industries for a possible buyout of the Indian operations, sources said. “Mayer has had a personal relationship with Mukesh Ambani and the Reliance group since his Harvard days,” said a person with direct knowledge of the matter.ET was first to report on August 13 that RIL was engaged in an early stage exercise to evaluate possibility of investing in Tik-Tok’s India operations. Reliance Industries did not offer any comments on the development.In a response to ET’s queries, a TikTok spokesperson said the company appreciates that the political dynamics of the last few months have significantly changed what the scope of Mayer’s role would be going forward, and fully respects his decision. “We thank him for his time at the company and wish him well,” the spokesperson added. Apart from Microsoft, those in the fray for TikTok’s operations in the US and the Australian and New Zealand markets include Oracle, backed by General Atlantic and Sequoia Capital. The Chinese company has offered no clarity on whether its Indian operations – where it clocked a user base of 200 million until it’s ban – is included in the ongoing sale negotiations.While Mayer’s departure has increased the state of flux, especially among some employees, others said that the letters by Mayer and Yiming give a positive message that a solution has been found.

from Economic Times https://ift.tt/3ltdVgT