TikTok rival Triller weighs going public

NEW YORK, United States - Triller, an app similar to TikTok that allows users to share short video clips online, is in talks with several companies about a possible merger that would allow them to go public on Wall Street, a source close to the discussions said Monday. 

The group was looking to raise capital from private investors when it was approached by several special purpose acquisition companies, a kind of publicly listed shell company that aims to merge with promising start-ups, the source told AFP. 

The sudden interest coincided with a crackdown on TikTok by President Donald Trump, who has threatened to ban the Chinese-owned social media giant if it doesn't hand over control of its US business to an American company by Nov. 12, citing national security concerns.

TikTok's Chinese parent company ByteDance is in negotiations with Silicon Valley company Oracle and retail giant Walmart over its US operations, which include some 100 million users.

The talks are taking place against a backdrop of increasing friction after Trump accused the company, without providing proof, of spying on US users for Beijing. 

Triller, launched in 2015, says it currently has 65 million monthly users around the world.

Its subscribers, which include celebrities such as Alicia Keys, Lil Wayne and Snoop Dogg, can easily pick music to go with a video clip.

The Los Angeles-based company is being advised by the merchant bank Farvahar Partners.

Its main shareholder is Proxima Media, which is currently valued at $1.25 billion, according to the same source.

The business is evaluating its various options, and there is no guarantee it will go public, the source said.

Neither Triller nor Farvahar Partners responded to an AFP request for comment.

Agence France-Presse

Shares in WeChat parent plunge 10 percent after Trump issues ban order

HONG KONG - Shares in the parent of Chinese social media giant WeChat tanked in Hong Kong on Friday after United States President Donald Trump signed an executive order banning Americans from doing business with the platform, citing national security concerns.

Tencent plunged as much as 10 percent in morning trade before paring losses and ending the session down 6.75 percent at HK$518.00, dragging the broader Hang Seng Index down more than two percent.

The sweeping restrictions on the firm, which come into effect in 45 days, also cover ByteDance, the owner of popular app TikTok. 

The move wiped almost $50 billion off Tencent's market capitalization, with the firm having surged about 70 percent since March as global tech titans benefited from stay-at-home orders aimed at containing the coronavirus.

It also adds to a laundry list of issues that have ratcheted up tensions between the superpowers, including Hong Kong, Huawei and the spread of the virus.

"The US government is expected to follow up with more measures targeting Tencent," Steven Leung, at UOB Kay Hian (Hong Kong), said.

"Tencent's overseas expansion map now looks a bit uncertain, since some M&A deals, especially if its targets are based in the US, will face challenges."

The move rippled around Asian markets, with investors concerned about increasingly bitter relations between the economic titans that some fear could lead to a renewal of their painful trade war.

Officials from both sides are due to meet next Saturday to review a trade deal signed earlier this year.

"Apart from the obvious fallout to Tencent and ByteDance, Washington DC's moves are sure to ratchet up geopolitical tensions with Beijing once again," said OANDA's Jeffrey Halley.

- With reports from Bloomberg News 

Agence France-Presse