• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • SCI-TECH
  • LIFESTYLE
  • FEATURES
  • OPINION
Home Sci-tech

ByteDance, Oracle at loggerheads over terms of TikTok agreement

21 September 2020, 9:22 PM  |
Reuters Reuters |  @SABCNews
ByteDance said on Monday that it will own 80% of TikTok Global, a newly created US company that will own most of the app’s operations worldwide.

ByteDance said on Monday that it will own 80% of TikTok Global, a newly created US company that will own most of the app’s operations worldwide.

Image: Reuters

ByteDance said on Monday that it will own 80% of TikTok Global, a newly created US company that will own most of the app’s operations worldwide.

ByteDance and Oracle Corp issued conflicting statements on Monday over the terms of an agreement they reached with the White House over the weekend to allow TikTok to continue to operate in the United States (US), casting doubt on President Donald Trump’s preliminary blessing of the deal.

China’s ByteDance was racing to avoid a crackdown on its popular short-video app after the US Commerce Department said on Friday it would block new downloads and updates to the app. US officials had expressed concern that the personal data of as many as 100 million Americans that use the app was being passed on to China’s Communist Party government.

A successful deal would allow Trump to drop his threat of shutting down TikTok and avoid alienating its army of young users ahead of the November 3 US election.

ByteDance said on Monday that it will own 80% of TikTok Global, a newly created US company that will own most of the app’s operations worldwide. ByteDance added that TikTok Global will become its subsidiary.

Oracle and Walmart Inc, which have agreed to take stakes in TikTok Global of 12.5% and 7.5% respectively, had said on Saturday that majority ownership of TikTok would be in American hands. On Monday, Oracle said ByteDance’s ownership of TikTok would be distributed to ByteDance’s investors, and that the Beijing-based firm would have no stake in TikTok Global.

Trump signed an executive order on August 14 giving ByteDance 90 days to relinquish ownership of TikTok. Oracle’s account of the deal would mean that ByteDance would be complying with that order, while ByteDance’s account would represent a policy reversal for Trump.

The White House referred to a Fox News interview on Monday, in which Trump said that Oracle and Walmart will have “total control” over TikTok.

“If we find that they don’t have total control, then we’re not going to approve the deal,” Trump said.

The corporate governance arrangement that the companies have disclosed for TikTok Global does not award total control to Oracle and Walmart. Walmart Chief Executive Doug McMillon would be one of five directors on TikTok Global’s board, the companies have said. Others would include ByteDance founder Zhang Yiming, and the heads of ByteDance’s two top investors, General Atlantic and Sequoia Capital. The fifth board director has yet to be named.

The current plan for TikTok Global does not involve any transfer of algorithms or technologies, and Oracle will be able to inspect TikTok U.S.’s source code, ByteDance said on Monday. This is akin to US companies such as Microsoft Corp sharing their source code with Chinese technology experts, ByteDance added. Oracle and Walmart have said all of TikTok’s technology will be in possession of TikTok Global.

The Commerce Department postponed a ban on downloads and apps to the TikTok app that was due to take effect on Sunday by one week, to give the companies time to finalize the deal.

The Committee on Foreign Investment in the United States, a US government panel that reviews deals for potential national security risks, has been overseeing the negotiations.

Some sources close to the deal have sought to reconcile the discrepancies by pointing out that 41% of ByteDance is owned by US investors, so by counting this indirect ownership TikTok Global would be majority owned by US parties. One of the sources said the deal with Oracle and Walmart values TikTok Global at more than $50 billion.

ByteDance on Monday also confirmed plans for an initial public offering of TikTok Global. Oracle has said this will happen in less than 12 months on a US stock exchange.

EDUCATION FUND

ByteDance also said a $5 billion payment of taxes TikTok Global will make to the US Treasury is based on estimated income and other taxes the company will need to pay over the next few years, and has nothing to do with the deal reached with Oracle and Walmart.

Trump last week had said there would be a $5 billion US education fund as part of the deal, but ByteDance has said it was not aware of this. Walmart, Oracle and some ByteDance investors said they would sponsor an educational initiative for online courses for children in the suburbs and inner cities.

ByteDance owning the majority of TikTok Global and the algorithms means that ByteDance is “not out of the game” and has avoided the worst-case scenario, China’s state-run newspaper Global Times said in an editorial published on Sunday.

But on Monday, Global Times editor-in-chief Hu Xijin tweeted: “Based on what I know, Beijing won’t approve current agreement between ByteDance, TikTok’s parent company, and Oracle, Walmart, because the agreement would endanger China’s national security, interests and dignity.”

China’s foreign ministry did not immediately respond to a request for comment.

 

Share article
Tags: Donald TrumpTikTokByteDance
Previous Post

SAA BRPs misled public on Treasury’s funding letter: DA

Next Post

President Ramaphosa urges UN to strengthen cooperation with regional bodies

Related Posts

FILE PHOTO: Russian hacking underground newsletter is seen in this illustration taken, December 19, 2022 REUTERS/Dado Ruvic/Illustration/File Photo

Italy sounds alarm on large-scale computer hacking attack

5 February 2023, 8:39 PM
Tests for detection of Cholera

Minister Phaahla calls for vigilance as SA records two cholera cases

5 February 2023, 6:20 PM
A vial of the measles, mumps, and rubella (MMR) vaccine is pictured at the International Community Health Services clinic in Seattle, Washington, U.S., March 20, 2019.

Cape Town on campaign to curb measles outbreak

5 February 2023, 1:19 PM
A green comet named Comet C/2022 E3 (ZTF), which last passed by our planet about 50,000 years ago and is expected to be most visible to stargazers this week, is seen journeying tens of millions of miles (km) away from Earth in this telescope image taken on January 21, 2023.

Green comet to be visible from SA next week

5 February 2023, 9:50 AM
Balloons with pink ribbons representing cancer awareness.

Health MEC says cancer misinformation is a big threat in KZN

4 February 2023, 3:20 PM
The word 'cancer' highlighted through a magnifying glass

‘Early detection can significantly reduce impact and cost of cancer’

4 February 2023, 10:53 AM
Next Post
President Cyril Ramaphosa was addressing the world body in a pre-recorded message, due to the hybrid model adopted by the UN as a result of the pandemic.

President Ramaphosa urges UN to strengthen cooperation with regional bodies

Most Viewed

  • 24hrs
  • Week
  • Month
  • Registration at Unisa closes on Friday, but management says no need to panic
  • Green comet to be visible from SA next week
  • VIDEO: Mabuza resigns as SA Deputy President
  • Shock over proposed SA sponsorship of Tottenham Hotspur
  • Budding Stellenbosch FC star reportedly stabbed to death
  • Parts of the Northern Cape to be exempted from rolling blackouts
  • Registration at Unisa closes on Friday, but management says no need to panic
  • VIDEO | St Benedict College’s Matric learner gets 11 distinctions
  • Limpopo matriculant from child-headed household attains diploma pass
  • Female circumcision practice thriving in Eastern Cape
  • Green comet to be visible from SA next week
  • Budding Stellenbosch FC star reportedly stabbed to death
  • Tributes pour in for Stellenbosch FC player Oshwin Andries
  • Mabuza asked to remain in his role until transition finalised
  • ‘SA will remain a sinking ship under the ANC’

LATEST

Water & Sanitation Minister Senzo Mchunu briefs media.
  • South Africa

Minister Mchunu to receive progress reports on North West water challenges


[File Image] Deputy President David Mabuza speaks in the National Assembly
  • Politics

Mabuza led with integrity: Mbalula


[File Image] Miners work deep underground at Sibanye Gold's Masimthembe shaft in Westonaria, South Africa, April 3, 2017.
  • Business

Energy crisis set to dominate Mining Indaba


Wouter Kellerman, Zakes Bantwini and Nomcebo Zikode receive the Grammy award for Best Global Music Performance in Los Angeles California on February 6, 2023.
  • Lifestyle

Kellerman, Bantwini, Zikode win Grammy award


President Cyril Ramaphosa
 has called a Joint Sitting of the National Assembly and the National Council of Provinces at 19h00 on Thursday to deliver the State of the Nation Address.
  • Politics

Opposition parties outline their expectations for SONA


Soccer Football - Premier League - Tottenham Hotspur v Manchester City - Tottenham Hotspur Stadium, London, Britain - February 5, 2023 Tottenham Hotspur's Harry Kane celebrates after the match after he became Tottenham Hotspur's all time top goalscorer Action Images via Reuters/Paul Childs EDITORIAL USE ONLY. No use with unauthorized audio, video, data, fixture lists, club/league logos or 'live' services. Online in-match use limited to 75 images, no video emulation. No use in betting, games or single club /league/player publications.  Please contact your account representative for further details.
  • Sport

Kane breaks Greaves Tottenham goal record, now targets Shearer


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • SCI-TECH
  • LIFESTYLE
  • FEATURES
  • OPINION

© 2022

Previous SAA BRPs misled public on Treasury’s funding letter: DA
Next President Ramaphosa urges UN to strengthen cooperation with regional bodies