October 26, 2020


US companies taking over China’s TikTok

 

Trump approves TikTok

ByteDance, china’s multinational tech company is going to make TikTok as its subsidiary company. Also, the US’s Oracle and Walmart along with its investors would own most of the TikTok.

It was done by US President Donald Trump as he signed an order to sell the app within 90 days. The order was signed on 14th August. There are also many concerns that if it happens then it will allow the Chinese government to have access to information from the millions of American users.

The deals differ with both sides, as it is speculated that ByteDance will have around 80% of TikTok on a global level but also, a new US company will have the majority of TikTok’s operations worldwide. 12.5% and 7.5% stakes will be taken by Oracle and Walmart, hence making the US a prime owner.

Some sources point out that US investors own about 41% of ByteDance while some other sources state that more than 50 billion dollars are valued for TikTok (on a global level) after a deal with the US companies, Walmart and Oracle.

The global board of directors for TikTok will have present ByteDance directors, Zhang Yiming (founder of ByteDance), and Doug McMillon (chief executive of Walmart).

TikTok will be sharing the source code with Oracle. Likewise, Microsoft will do the same with Chinese technology specialists.

Other than that, ByteDance will make a payment of 5 billion dollars to the United States Treasury. The payment is based on the income and other taxes that TikTok will have to pay over the coming years. They have also made sure that it has nothing to do with what is finalized with the US companies, Walmart & Oracle.