The deal to keep TikTok running in the US is headed for another impasse over control of the new company.
According to TheStreet, TikTok Global will be a new company created to handle operations outside of China. Oracle, along with Walmart, will take a 20% stake in the company. This is a big win for Walmart, as they originally had tried to partner with Microsoft in their failed bid. TikTok’s CEO was insulted by Microsoft describing the social media platform as a security risk, torpedoing Microsoft’s involvement in the company’s future. Walmart, however, was able to avoid the fallout and jump onboard with Oracle’s successful bid.
Unfortunately for the companies involved, there appears to be some disagreement about who will have majority ownership. President Trump had claimed that TikTok’s ownership would “have nothing to do with any outside land, any outside country. It will have nothing to do with China.”
ByteDance, on the other hand, has said TikTok Global’s technology, majority ownership and the bulk of its executive board would be based in China. According to International Business Times, however, Trump has vowed to block any deal that leaves the new company under Chinese control.
It remains to be seen if the involved parties will be able to work out a resolution.