Deal Between Oracle and TikTok Finalized as U.S. Takes Majority Stake
Sources indicate that the latest negotiations between the U.S. government and ByteDance, the parent company of TikTok, have resulted in ByteDance agreeing to allow a U.S. company to hold a majority stake in the new entity formed from the acquisition of TikTok.
According to sources, U.S. investors, including Oracle Corp and Walmart, will hold at least 60% of TikTok, and the new company will be named "TikTok Global."
The board of TikTok Global will have a majority of American directors, and an American will serve as the CEO. Oracle will hold a 20% stake in TikTok Global, and an executive from Walmart will be one of the board members of the company.
This agreement comes after the U.S. Treasury submitted a new proposal to ByteDance yesterday to address national security concerns, which ByteDance has responded positively to.
Sources state that President Donald Trump is expected to decide within 24-36 hours whether to approve Oracle's proposal to acquire TikTok in the U.S. The president has discussed the matter with cabinet members and advisors before making a final decision.
Previously, there were reports that President Trump expressed dissatisfaction with ByteDance being the majority shareholder in TikTok's U.S. operations.
SOURCE : www.bangkokbiznews.com