- TikTok parent ByteDance Ltd founder Zhang Yiming will step down as the CEO to focus on long-term strategy amid China’s heightened crackdown on the tech sector, the Wall Street Journal reports.
- Co-founder and human resources chief Liang Rubo will succeed Yiming as the CEO. The transition will occur over the next six months, and Yiming will continue as board Chairman.
- The changes occurred just ahead of its hugely awaited initial public offering and e-commerce foray to take on the likes of Alibaba Group Holding Ltd BABA and Meituan MPNGF.
- TikTok had recently appointed ByteDance Ltd CFO Shou Zi Chew to the additional position of the TikTok CEO. Vanessa Pappas had been the interim CEO since Kevin Mayer’s sudden resignation in August.
- In April, 34 Chinese tech companies, including ByteDance, had publicly vowed to comply with the country’s antimonopoly laws, shortly after Alibaba’s $2.8 billion antitrust penalties.
- Last month, the central bank and other regulators mandated 13 companies, including ByteDance, to tighten their data and lending practice regulations.
- ByteDance’s subsidiary had to pay $78,000 in March to the antitrust regulator for failing to disclose a previous merger. Eleven companies, including ByteDance, had to conduct a security review over the use of deepfake technology to create hyper-realistic fake videos. ByteDance subsidiary and Douyin operator paid a penalty of $9,300 for inappropriate content.
- The Trump government proposed to ban TikTok lest it found an American buyer. The Biden government reversed the ban in February.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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