A smartphone with the Tik Tok logo is seen in front of a displayed Oracle logo in this illustration taken, Septemeber 14, 2020 Photograph:( Reuters )
This new company will have a majority of American directors, a US chief executive and a security expert on the board
ByteDance, the Chinese company that owns the popular video-sharing app TikTok, is inching towards the deadline of selling its US shares to an American company. However, TikTok has not been able to secure a deal with any company yet.
Rumours had it that Microsoft will be taking over the US shares of the company, but that deal fell out after weeks of planning and research. Oracle Corp, now, will be holding the minority shares in the company. However, that deal does not play well with the US President Donald Trump — who implemented the ban.
Now, people working closely in this matter have told the local agencies that TikTok is planning to offer an initial public offering of TikTok Global. The plans will be finalised only after the Trump administration agrees to the already proposed deal by TikTok.
This new company will have a majority of American directors, a US chief executive and a security expert on the board — the company hopes this will be in agreement with Trump.
Donal Trump had, yesterday, expressed discomfort with Oracle holding minority shares in TikTok's new deal, especially after several lawmakers advised him to not take the deal.
The new deal will give Oracle and Walmart a chance to get a seat in the board of the new and US-based TikTok Global, with Oracle owning a 20 per cent stake in the company.
The final details of the deal will be revealed soon. As of now, Trump has provided no details except saying, "nothing much has changed."