Allegedly Agreement in the Dispute Over Tiktok Majority
Walmart and Oracle have apparently prevailed – the Chinese company Bytedance is said to have approved a US majority in Tiktok.
In the dispute over the control of the short video platform Tiktok, according to an insider, an agreement has been reached between the Chinese owner Bytedance and the US government. According to a new draft from the US Treasury Department, which Bytedance has already approved, the US companies Oracle and Walmart and the US shareholders of Bytedance should hold at least 60 percent of Tiktok, a person informed about the situation said to the Reuters news agency.
US President Trump sees security and data protection problems with the Tiktok app, which is particularly popular with young people, and has repeatedly called for the company to be sold to a US company or its closure. According to the ministry paper, a new company called Tiktok Global is to be created, which is headed by an American and has a majority of Americans on its board of directors.
Trump worries about national security
The software company Oracle, which had initially sought a partnership with Tiktok, now wants to acquire 20 percent of the shares. Trump sees the Tiktok activities as a risk to national security. He fears that information from around 100 million monthly users in the US could be shared with the Chinese government.
In August, Trump banned US companies from doing business with Tiktok and the Wechat messenger app from the Chinese Internet company Tencent. The action fueled tensions in the trade dispute with China. It was later reported from circles that Bytedance was planning an IPO for Tiktok Global.
The prerequisite is that the US government approves the project, said people familiar with the matter. The listing on the US stock exchange is planned in about a year. Neither Bytedance nor Oracle was initially given a statement.
Allegedly Agreement in the Dispute Over Tiktok Majority - /10