Oracle and ByteDance announced last week that they will work together to keep TikTok operating in the US. In the first statement, no information was given about the details of the agreement between the parties. However, with the new week, information about the process becomes clear. In the statement made by Oracle, it was stated that the activities will be carried out under a new roof called TikTok Global and this operation will proceed independently from ByteDance.
Oracle and Walmart will be the main partners at TikTok Global. The investments will be made by these two companies and the shares will be distributed among the shareholders of these two companies. ByteDance will not be a partner of TikTok Global and the company will be controlled by the Americans.
In the previous reports, it was claimed that Oracle and Walmart will own 20 percent of the new structure and the remaining 80 percent will be controlled by ByteDance. This claim was left unanswered by both ByteDance and Oracle.
US President Donald Trump has stated that China must give up control of TikTok for the agreement to be ratified.
TikTok’s fate in the USA is still uncertain. The US Department of Commerce took action last Friday to impose sanctions on the social network; however, with the unofficial approval given by the US President at the weekend, the implementation was delayed. TikTok’s court application for the suspension of the sanctions was also rejected with the postponement decision. Donald Trump was expected to withdraw presidential orders for TikTok this week.
It seems that the discussions on TikTok Global will continue for a while. Apart from the US, China’s approval is also required for the agreement to be valid. It is wondered how the conflict of interest between the two administrations will be reflected here.