ByteDance will have no ownership over new TikTok Global: Oracle

Ruben Fields
October 19, 2020

The US Commerce Department said it is postponing the planned block of new TikTok downloads until September 27, in light of President Donald Trump's new announcement.

"We're pleased that today we've confirmed a proposal that resolves the administration's security concerns and settles questions around TikTok's future in the U.S.", TikTok interim global head Vanessa Pappas said in a statement. He added that Oracle and Walmart will have "total control" over the app. If that is the case, I'm not going to be happy with that, ' Trump told reporters at the White House on Wednesday. Tiktok parent company ByteDance was reportedly angered by Microsoft calling it a security risk.

That now includes Oracle and Walmart together investing to acquire 20% of the newly formed TikTok Global business, created to provide all TikTok services to users in the United States, and to most of the users in the rest of the world.

Oracle and Walmart are seeking stakes of 12.5% and 7.5%, respectively. This is the Act the administration used to justify its ban on TikTok.

The US president also said that the deal would include a Dollars 5 billion donation to an education programme.

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That body would be chaired by an American data-security expert who would be the primary contact with the Committee on Foreign Investment in the US, which would oversee any issues of concern to the USA government.

Notably, shortly after the release of ByteDance statement that it would be holding 80 per cent stake in the newly formed TikTok entity which in effect would enable TikTok to continue operation for its 100 million US users, Oracle said in a statement on Monday that the ByteDance stakes in TikTok Global would be distributed among ByteDance investors and the Beijing-based conglomerate holding would no longer have any stake in TikTok's global operation.

China's ministry of commerce said that companies that end up on "unreliable entity" list could be banned from importing or exporting from China, and may be barred from investing in the country.

White House Chief of Staff Mark Meadows said early Thursday that he's concerned that Oracle's bid for TikTok may be a "repackaging" that won't meet the president's goals.

Any deal needs to be approved by both Trump - who could still reject the transaction - and the Chinese government, where officials have accused the USA of "economic bullying".

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