The acquisition of TikTok by Oracle has put ByteDance, the Chinese company out of the North American business
At a press conference today, Oracle announced that its new company TikTok will not be controlled in the slightest way by ByteDance, which is why there is talk of a major break with respect to the agreement between the two companies.
In the statement by Oracle, it was reported that after the creation of TikTok Global, Oracle / Walmart will make their investment and the shares of TikTok Global will be distributed to their owners, so that US companies will be the majority and ByteDance you will have no ownership on TikTok Global.
The statement differs significantly from the previous information showing that Oracle and Walmart would only have a 20% stake in the new company and ByteDance would retain control of the remaining 80%, however ByteDance has not publicly renounced its claim to the company.
ByteDance will no longer have power over TikTok
TikTok’s ability to operate within the United States remains in doubt, as the Commerce Department had prepared to impose sanctions against the company on Friday, only to delay action after the president gave the deal approval. Informal on the weekend.
Government officials in China have been wary of any agreements made, throwing plans into chaos in August when they instituted new export controls on algorithms like the one powered by TikTok’s For You page.
The current proposal, in which Oracle and Walmart will each take a minority stake in a new US-based TikTok corporation, was presented as a compromise to bypass those export controls, though many are skeptical whether it sufficiently addressed security concerns. national.
It is unclear whether the Chinese government will approve the new deal or take additional steps to fight against it.