China's ByteDance says TikTok will be its subsidiary under deal with Trump

Amid tense trade ties between Washington and Beijing, China’s ByteDance has said that TikTok’s global business will become its subsidiary.
September 22, 2020 | 08:27
us bans downloads of tiktok and wechat as of this sunday US bans downloads of TikTok and WeChat as of this Sunday
tencent to open regional hub in singapore following india us bans Tencent to open regional hub in Singapore, following India, US bans
oracle chosen instead of microsoft in deal for tiktoks us operations Oracle chosen instead of Microsoft in deal for TikTok’s U.S operations
4455 capture
The logos of the Chinese video portal TikTok and the US software and hardware manufacturer Oracle Corporation can be seen on a smartphone and screen. (Photo: CNBC)

Amid tense trade ties between Washington and Beijing, Trump signed an executive order on August 14 giving ByteDance 90 days to sell TikTok, amid concerns that the personal data of as many as 100 million Americans that use the app could be passed on to China’s Communist Party government. On September 19, he said he supported a deal in principle that would allow TikTok to continue to operate in the United States.

Accounts of the deal differ. ByteDance said today (September 21) that it will own 80% of TikTok Global, a newly created U.S. company that will own most of the app’s operations worldwide, even though Oracle and Walmart, which have agreed to take stakes in TikTok Global of 12.5% and 7.5% respectively, had said on Saturday that majority ownership of TikTok would be in American hands, Reuters cited.

ByteDance will not transfer algorithms and technologies to Oracle as part of a deal announced over the weekend to keep social media app TikTok operating in the U.S. “The current plan does not involve the transfer of any algorithms and technologies. Oracle has the authority to check the source code of TikTok USA,” ByteDance’s statement said, according to a CNBC translation.

4513 capture1
ByteDance said on Monday that it will own 80% of TikTok Global. (Photo: The Federal)

ByteDance added that it was a “rumor” that U.S. investors would be TikTok Global’s majority owners and that ByteDance would lose control over TikTok. Oracle declined to comment on ByteDance’s statement, while Walmart did not respond to a request for comment. However, according to Reuters, Oracle and Walmart said in a joint statement on September 19 that four out of the five board of directors will be Americans.

ByteDance also confirmed that it would do a small round of pre-IPO (initial public offering) financing. TikTok Global will become an 80% holding subsidiary of ByteDance as a result, giving it majority control. As part of the Oracle and Walmart deal, the companies said they would work toward a public listing in the U.S. within a year.

Over the weekend, Trump said the new TikTok Global will “have nothing to do with any outside land, any outside country, it will have nothing to do with China. It’ll be totally secure. That’ll be part of the deal," CNBC quoted.

Beijing-based ByteDance’s majority ownership of TikTok appears to contradict that. But ByteDance is 40% owned by U.S. venture capital firms, so the Trump administration can technically claim TikTok Global is now majority owned by U.S. money.

new chinese rules splashing water against trumps attempt to force bytedances tiktok selling New Chinese rules splashing water against Trump's attempt to force ByteDance's TikTok selling

Beijing appears to have just thrown a wrench into the possibility that TikTok could be sold to an American buyer to avoid a ban on ...

tiktok to belong to microsoft walmart or oracle Tiktok to belong to Microsoft-Walmart or Oracle?

The world’s largest retailer Walmart partners with giant tech Microsoft in the race with Oracle to acquire Chinese video-sharing app Tiktok.

china warns to boycott apple if us bans wechat China warns to boycott Apple if US bans WeChat

Chinese foreign ministry spokesman proclaimed that Chinese consumers could boycott Apple if the United States bans WeChat. The statement comes after the US President Donald ...

Valerie Mai

Insider

Top 10 Most Beautiful and Must-Visit Caves In The World Travel

Top 10 Most Beautiful and Must-Visit Caves In The World

Caves are the creation of nature, charming any tourists with their mysterious and an air of danger, waiting for humans to explore the deepest secrets inside them. Take a look at these magnificent and beautiful caves around the world that you must visit once in your lifetime.
16:16 | 19/10/2021
Tien Linh Wins The AFC Best International Player of the Week Viet's Home

Tien Linh Wins The AFC Best International Player of the Week

According to the AFC official statement, Vietnam striker Nguyen Tien Linh won the AFC International Player of the Week after receiving the most votes out of the remaining nine players.
16:15 | 19/10/2021
What’s New Coming On Netflix in November 2021 Handbook

What’s New Coming On Netflix in November 2021

November is coming close, and the cold outside makes us want to curl up inside our warm blanket and bing watch our favorite movies or shows. Here is the list of what is coming on Netflix in November, and some of the most expected Netflix originals for you to enjoy.
15:28 | 19/10/2021
Phiên bản di động