ByteDance is planning to take TikTok public through a new corporate entity, provided that the deal can pass muster with the White House, according to a report.
Citing sources close to the deal, Reuters reported on Thursday that China-based ByteDance is aiming for an IPO of a spinoff called TikTok Global.
The IPO would take place on a U.S. stock exchange and happen about a year from now, according to Reuters.
Shares of Oracle fell 1% on Thursday to $59.80 amid broader market declines.
TikTok is under the gun to arrange a deal with a buyer for its U.S. assets, with the White House threatening a ban by Sept. 20 if a deal doesn't happen.
Oracle recently confirmed that it is part of a consortium negotiating a buyout of TikTok, but the potential deal comes with several complications, including new rules imposed by China that could restrict the transfer of TikTok's algorithms.
Earlier this week, Oracle confirmed comments by U.S. Treasury Steve Mnuchin that it may be considered a "technology partner" to ByteDance, giving it stewardship but not necessarily full ownership of TikTok's U.S. assets. ByteDance earlier rejected a competing offer from Microsoft (MSFT) - Get Report.
Oracle is also seeking approval from the White House in the deal, and President Trump suggested this week that he would not "like" any deal that allows ByteDance to retain its majority stake in TikTok's U.S. business.
Trump has also said that the U.S. Treasury should receive a cut of the deal.