New York / Beijing:
China’s ByteDance announced Monday that TikTok’s global business will become its subsidiary, despite Oracle Corp and Walmart Inc saying over the weekend that they and US investors will control the majority after a deal with US President Donald Trump’s administration Video app.
Trump signed an executive order on Aug. 14 that gave ByteDance 90 days to sell TikTok, fearing that the personal information of up to 100 million Americans who use the app could be leaked to the Chinese Communist Party government . On Saturday, he said he supported a deal of principle that would allow TikTok to continue operating in the US.
Accounts of the business differ. ByteDance announced Monday that it will own 80% of TikTok Global, a newly formed US company that will own most of the app’s operations worldwide. Oracle and Walmart, which have agreed to acquire 12.5% and 7.5% stakes in TikTok Global, respectively, announced on Saturday that the majority stake in TikTok would be in American hands.
ByteDance said in its statement on Monday that it was a “rumor” that US investors would be majority owners of TikTok Global. Oracle declined to comment on ByteDance’s testimony, while Walmart did not respond to a request for comment.
Some sources close to the deal have tried to make up the discrepancy by pointing out that 41% of ByteDance is owned by US investors. Taking this indirect ownership into account, TikTok Global would be majority owned by US parties. According to one source, the deal with Oracle and Walmart values TikTok Global at more than $ 50 billion.
TikTok also confirmed plans for TikTok Global to go public. The Beijing-based company announced that TikTok Global’s board of directors will include ByteDance’s founder, Zhang Yiming, as well as Walmart’s general manager Doug McMillon and current ByteDance directors.
The current plan for TikTok Global does not include any algorithm or technology transfer, and Oracle will be able to review the TikTok USA source code, ByteDance said. This is on par with US companies like Microsoft Corp. sharing their source code with Chinese technology experts, ByteDance added.
ByteDance also said a $ 5 billion payment TikTok Global is expected to make to the U.S. Treasury Department is based on estimated revenue and other taxes the company will have to pay over the next several years, and nothing like the one with Oracle and Walmart has got business to do with. Trump announced last week that the deal would include a US $ 5 billion education fund.
(Except for the headline, this story was not edited by GossipMantri staff and published from a syndicated feed.)