It is still not clear who will have the majority of the social media app TikTok in the future.
In mid-September, it was expected that TikTok would be acquired by Oracle and the retail chain Walmart. But there still seems to be no final agreement.
Deal could fail due to Trump and Bytedance
The whole thing can fail because US President Donald Trump sees a problem in the fact that the data of US users is going to China. Data security is an important point in this deal.
Donald Trump is said to have made a threat to the New York Times about this. By trying to block the deal. In his opinion, the still-owner Bytedance should give up control of the video app completely to Oracle and Walmart. According to the deal, Oracle is to take over the workmanship of all user data. Furthermore, Oracle should also take care of the technical systems behind the app.
Steps backwards in the takeover
The threat is a step backwards, as Donald Trump had only last weekend agreed to the purchase of TikTok by Oracle and Walmart. It was planned that even before the actual IPO of TikTok Global, Oracle would acquire a 12.5 percent stake. Walmart was to receive a 7.5 percent share in the video app.
Prior to this agreement, US President Donald Trump wanted to stop the app’s downloads in order to block all traffic. The background was to push the Chinese company Bytedance out of the market.
Contradictions about the majority
Yesterday, contradictory statements became known. According to a representative of the company Oracle to the New York Times, the share of Bytedance with 80 percent should go to the shareholders. Thus, Americans would have the majority and the parent company Bytedance would no longer have a stake in TikTok Global.
China, however, wants to resist the intimidation attempts of the USA. They do not want to accept an unfair agreement.
In China’s view, the proposed conditions are a “violation of China’s national security, interests and dignity” – according to the government-affiliated “Global Times” today.
The struggle continues
Donald Trump, however, expressed himself clearly. He will not approve the purchase if control of the video app is not exercised by Oracle and Walmart. In his opinion, Bytedance should no longer have anything to do with TikTok Global.
It is a real back and forth. There is no end or agreement in sight so far.