Santa Clara's Oracle Corp., China's ByteDance in feud over terms of TikTok agreement

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Santa Clara's Oracle Corp., China's ByteDance in feud over terms of TikTok agreement

On Monday, Chinese tech conglomerate holding ByteDance and American software industry titan Oracle Corp. had been at daggers drawn over a planned TikTok deal as the aforementioned companies, which were expected to follow through an accord with the White House to divest the ByteDance-owned TikTok’s US operation, had issued largely dialectical statements over the terms of the deal that would allow TikTok to continue to operate in the United States, raising doubts over President Trump’s preliminary backing of the deal.

In point of fact, latest leg of loggerheads over the terms of TikTok agreement came forth as ByteDance representatives were quoted saying on Monday that the firm would hold an 80 per cent stake in TikTok Global, a newly formed US-based entity which would be owning the app’s global operations.

Nevertheless, Oracle and Walmart Inc., which had agreed to take 12.5 and 7.5 per cent stake in TikTok Global respectively, had reported that the majority ownership of TikTok Global would be in the hands of American firms, eventually spurring up controversies over the possibilities of a potential TikTok deal.

TikTok deal in doubts as Oracle, ByteDance wrangle

Notably, shortly after the release of ByteDance statement that it would be holding 80 per cent stake in the newly formed TikTok entity which in effect would enable TikTok to continue operation for its 100 million US users, Oracle said in a statement on Monday that the ByteDance stakes in TikTok Global would be distributed among ByteDance investors and the Beijing-based conglomerate holding would no longer have any stake in TikTok’s global operation.

Besides, the US President Donald Trump, who gave his blessings to TikTok’s US operation a couple of days earlier, did not make any decisive comment on Monday, but was quoted saying that the deal had been “working its way through.

” Apart from that, reemphasizing the requirements of a flawless safety blanket for the US nationals, Trump said to the reporters late on Monday before departing the White House, “If we can save (TikTok), we will save it, and if we can’t we will cut it off. We have to have total security”.