Trump threatens to knock down TikTok deal if US doesn’t have “full control”

President Trump threatened to tear down the deal between Walmart, Oracle, and China’s ByteDance on the popular TikTok app. Trump sa...

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  • President Trump threatened to tear down the deal between Walmart, Oracle, and China’s ByteDance on the popular TikTok app.
  • Trump said he will not accept a deal between Walmart, Oracle and ByteDance if the United States does not gain full control of TikTok.
  • Both parties have given confusing versions of the agreement, but Trump has made clear his demand to allow TikTok to remain in the country.

New obstacle arises. Now President Donald Trump has threatened to tear down the deal between Walmart, Oracle, and ByteDance if the United States does not receive full control of TikTok.

The news agency Efe reported that Trump threatened on Monday not to approve the agreement reached between Oracle and Walmart with the Chinese ByteDance on TikTok if US companies do not have “total control” over the resulting partnership.

Asked in an interview on Fox News about the confusion in the last hours regarding the presence of ByteDance in the new company that will be created to manage TikTok’s business in the United States, TikTok Global, Trump said that he expects the Chinese firm to disregard completely.

“(ByteDance) will not have any link (with the new company), and if they do, we will not approve the agreement,” said Trump, who also noted that if Oracle and Walmart “do not have full control” over TikTok Global, they will not give their consent.

Efe recalled that the United States government announced on Saturday that it was delaying the application of measures against TikTok for a week, which was scheduled to come into effect on September 20, after Trump gave his “blessing” to the preliminary agreement with Oracle and Walmart so that it can operate in the country.

“I have given my blessing to the agreement, if they achieve it it would be great and, if not, it would also be good, but it is a great agreement for the United States,” said Trump, who shortly after added that he approved the agreement “in concept”, but that negotiations were still continuing, Efe reported.

However, since then, the Chinese and US parties to the deal have given different versions of how TikTok Global will be structured.

The aforementioned news agency explained that according to the version of Oracle and Walmart -which will control 20% of the future firm-, most of the new company will be US-owned.

However, according to ByteDance, they will control the remaining 80% until its IPO takes place with an initial public offering in about a year.

Trump TikTok deal

The version of the agreement offered by ByteDance, therefore, does not satisfy the conditions of the executive order issued by Trump on August 14, which forced the operation by requiring the Chinese company to sell its business in the United States or stop operating in the country. .

TikTok owner would seek payment of $ 60 billion per agreement with the US.

Following President Donald Trump’s approval of a preliminary deal, the owner of TikTok would seek How paid 60 billion dollars.

Bloomberg reported Sunday that Chinese company ByteDance Ltd. is seeking a $ 60 billion valuation for TikTok, as Oracle Corp. and Walmart Inc. are participating in the deal that arose out of alleged concerns for U.S. security, according to a person familiar with the matter.

According to the Bloomberg source, who asked not to be identified when discussing private negotiations, Oracle and Walmart have the right to purchase 12.5% ​​and 7.5%, respectively, of a newly established Global TikTok under a agreement that won the approval of President Donald Trump on Saturday,

The two companies would pay a total of 12 billion dollars for their shares if they accept that sale price, detailed the aforementioned media.

The final value had not been established as the parties draw up the capital structure and measures for data security, the source said.

The terms are still changing and the proposed value could still change. Beijing has yet to approve the deal, although regulators are said to favor any transaction in which ByteDance, the owner of TikTok, maintains control of its valuable recommendation algorithms and other proprietary technology.

As you will recall, ByteDance was pressured to agree to a deal by TikTok when Trump threatened to ban the popular short video app in the United States over alleged national security concerns.

After Microsoft Corp. made a proposal for the full purchase of the service, ByteDance turned to Oracle’s offer in which the Chinese parent would retain a solid majority stake.

“I approved the deal in concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they can, it’s great. If they don’t, that’s fine too, ”he commented.

Representatives for ByteDance and Oracle did not immediately respond to requests for comment from Bloomberg.

The value of TikTok has been a looming question as Washington and Beijing stepped up their rhetoric on the negotiations. The service for the US market alone has been estimated to be worth $ 20 to $ 50 billion, or even more. Snap Inc., for context, is trading at a valuation of $ 35 billion, Bloomberg said.

ByteDance, the Beijing-based parent company, is the world’s most valuable private startup at $ 140 billion, according to market researcher CB Insights.

The TikTok Global deal does not include the app’s Chinese twin Douyin, which has become a huge hit in its own right.

ByteDance may end up owning up to 80% of TikTok Global, which would include the app’s operations in the United States and the rest of the world, excluding China. Venture companies, including Sequoia Capital and General Atlantic, can also acquire shares in the new business, explained the aforementioned media.

Under the current proposal, there will be five seats on the TikTok Global board. Walmart CEO Doug McMillon will become a director, the retailer said in a statement.

TikTok Global will likely be based in Texas and will hire “at least” 25,000 people, Trump said. You will need to hire thousands of content moderators, engineers, and marketing staff previously located in China and around the world.

TikTok Global intends to hold an initial public offering within 12 months, Oracle and Walmart said. And Trump said on Saturday he wants $ 5 billion from companies to create a new US-based TikTok aimed at teaching American children “the real history of our country.”

The post Trump threatens to knock down TikTok deal if US doesn’t have “full control” appeared first on Hispanic World.

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