Oracle acquires 12.5% stake in Byte Dance
US software company Oracle acquires 12.5% stake in Byte Dance, the Chinese parent company of mobile app TikTok.
CULVER CITY, CALIFORNIA — AUGUST 27: The TikTok logo is displayed outside a TikTok office on August 27, 2020 in Culver City, California. The Chinese-owned company is reportedly set to announce the sale of U.S. operations of its popular social media app in the coming weeks following threats of a shutdown by the Trump administration. (Photo by Mario Tama/Getty Images)
The TikTok deal gives Oracle a 12.5% stake in the platform and a 7.5% stake for Walmart.
- The deal comes a day before the deadline to ban TikTok downloads in the United States.
- Meanwhile, the deal gives Oracle a 12.5% stake in the platform and a 7.5% stake for Walmart.
- The agreement stipulates the creation of a new company called TikTok Global.
- But the new agreement will ensure that US data cannot be accessed overseas.
President Donald Trump on Saturday approved an agreement between Byte Dance, the Chinese parent company of mobile app TikTok, and Oracle, a US software company.
Also, US-based Walmart will take a minority stake in the initiative. The deal comes a day before the deadline to ban TikTok downloads in the United States. A one-week extension is allowed to wash the details.
Minority role in TikTok
Despite President Trump’s opinion that TikTok should be wholly American, Byte Dance will maintain 80% ownership stake.
Meanwhile, the TikTok deal gives Oracle a 12.5% stake in the platform and a 7.5% stake for Walmart. But the deal leaves much of its operational control to its US partners.
The agreement stipulates the creation of a new company called TikTok Global, which is headquartered in the United States. Also, four of TikTok Global’s five board seats will go to Americans.
As mentioned in Trump’s August executive order, although the deal did not hand over full control of the company to an American buyer, the president told reporters that he had “blessed” the deal.
“If they do, it’s the best,” Trump said . “If they don’t, that’s fine too.”
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Originally published at https://lifestyleug.com on September 22, 2020.
