US President Donald Trump has dampened prospects for the deal that is supposed to save the Tiktok video app in the US. According to previous announcements, the American software company Oracle will take on the role of a “technology partner”, while according to media reports, the Chinese Tiktok owner Bytedance wants to keep the majority stake. With such a solution he would be “not happy” said Trump on Wednesday. However, he will only be informed about the details of the plan on Thursday.
The “Wall Street Journal” reported afterwards that the White House was urging that American investors get a majority in Tiktok.
Trump originally gave Bytedance the choice of either parting with Tiktok or accepting an end to the app in the USA. Trump describes Tiktok as a security risk on the grounds that Chinese authorities could get data from Americans. Tiktok and Bytedance deny this.
Oracle is supposed to ensure technology security in the USA
Microsoft spent weeks negotiating the purchase of the Tiktok business in the United States, Canada, New Zealand, and Australia. However, the Chinese government torpedoed this solution with a new rule, according to which software algorithms like those from Tiktok can only be sold abroad with Beijing’s approval.
The new plan was then worked out with the participation of Oracle. According to media reports, Oracle should take over the storage of data from US users – and also get access to Tiktok’s software code. This should ensure that the platform does not contain any back doors for Chinese authorities. In addition, the global business of Tiktok will be bundled according to the plan in a new company based in the USA, it said. Among other things, US Treasury Secretary Steven Mnuchin now wants to ensure that significantly more than 50 percent of the shares in this company are held by American investors. In addition to Oracle and venture capitalists, the supermarket giant Walmart, who wanted to participate in Microsoft’s deal, should also be there.
Time is playing for Trump
Trump also complained that he had to give up his idea that the US state would get a kind of commission from the sale of the Tiktok business because his government had made the deal possible in the first place. “There is no legal way to do this,” said Trump. “I said, wait a minute, you want to pay the government a large amount – and we can’t accept the money? How stupid can we be? “
Trump initially prohibited American companies and people from doing business with Tiktok. This order should come into effect at the weekend – if there is no deal by then, it should mean the end of Tiktok in the USA for the time being.
Another Trump decree is due to take effect in mid-November, according to which Bytedance has to separate from all data from users in the United States. Bytedance is also no longer allowed to own property in the USA that is used for the operation of Tiktok.