A subsidiary of Bytedance, the owner of popular video-sharing app TikTok, and a Chinese state media group established a joint venture that will focus on partnership in the “digital rights of short videos,” Reuters reported Saturday, citing a Bytedance spokesperson.
Beijing Liangzi Yuedong Technology Co. Ltd., a wholly owned subsidiary of Bytedance, holds 49% of the joint venture, while Shanghai Dongfang Newspaper Co. Ltd. has 51%, according to documents from the National Enterprise Credit Information Publicity System.
The joint venture, named Pengpai Audiovisual Technology (Jinan) Co. Ltd., was set up Dec. 10 and has a registered capital of 10 million yuan ($1.4 million). Its business scope includes intellectual property services, artificial intelligence software development and blockchain technology development, among others, the documents show.
TikTok’s rapidly growing popularity among American teenagers and celebrities has drawn the attention of the U.S. government, which has tightened scrutiny of the parent Bytedance because of alleged ties with the Chinese government. The American government reportedly launched a national security probe into Bytedance’s 2017 acquisition of U.S. social media app Musical.ly.
Bytedance, one of the world’s biggest unicorns, has also strengthened ties with state media organizations by letting them open official accounts on its news aggregation platform Jinri Toutiao. The news app once drew criticism for its role in distributing inappropriate and vulgar information.
Contact reporter Ding Yi (email@example.com)