The US president is “not happy” with the current terms of the Oracle-Tiktok agreement. The US government is apparently pushing for the US company to get the majority of the Chinese app.
US President Donald Trump has tempered prospects for the deal that should save the Tiktok video app in the US. According to previous announcements, US software company Oracle will assume the role of “technology partner”, while media reports say Chinese Tiktok owner Bytedance retains the majority stake in Wikk. He would “not be happy with such a solution,” Trump said on Wednesday. However, he will not be informed of the details of the plan until Thursday.
The Wall Street Journal reported afterwards that the White House pushed for US investors to get a majority in Tiktok.
Trump originally gave Bytedance the choice of either saying goodbye to Tiktok or ending the app in the US. Trump describes Tiktok as a security risk because the Chinese authorities could get data from Americans. Tiktok and Bytedance deny this.
Possible deal with Microsoft has been broken
Microsoft spent weeks negotiating the purchase of the Tiktok business in the United States, Canada, New Zealand and Australia. However, the Chinese government has torpedoed this solution with a new rule that software algorithms like Tiktok’s should only be sold abroad with their approval.
The new plan was then worked out with the cooperation of Oracle. According to media reports, Oracle should take over US users’ data storage – as well as access Tiktok’s software code. This is to ensure that the platform does not contain loopholes for Chinese authorities. In addition, according to the plan, Tiktok’s global operations will be bundled into a new company in the United States.