Trump ordered ByteDance to avoid a TikTok debate amid U.S. concerns that consumer data could be sent to the Communist Party of China government. He threatened to ban Tic Tac Toe in America on Sunday if he did not follow the ByteDance.
President Donald Trump said Tuesday that Oracle Corp is very close to TikTok ByteDance’s deal, despite sources saying the Chinese company wants to retain a majority stake in the popular short video app.
According to sources, the Beijing-based company will have a larger stake in TikTok’s global business and will create its headquarters in the United States. ByteDance has promised to create 20,000 U.S. jobs with TikTok, Treasury Secretary Steven Muchin said Monday.
Sources said that Oracle will be the technical partner of ByteDance, which is responsible for managing TikTalk data, and will own a minority stake in TikTalk.
“I heard they were very close to a deal,” Trump said, adding that his administration would soon decide whether to accept it and that he was a fan of Oracle chairman Larry Ellison.
U.S. oversees contract negotiations to oversee how TikTok works. The government panel is seeking ByteDance advice from the United States Foreign Investment Commission (CFIUS), a source said.
According to two sources, CFIUS Chairman Muchin and Commerce Secretary Wilbur Ross met at the White House on Tuesday to consider a ByteDance proposal.
It is unclear whether Trump will approve of the ByteDance proposal and requested anonymity as the talks are confidential. The White House did not immediately respond to requests for comment.
On August 14, Trump signed an executive order calling for bytedance to prevent TikTok in the United States.
CFIUS, who filed a lawsuit on August 6 against Trump’s former executive order calling for a ban on TicTac, said he did not see any mitigation measures to address national security risks, but that TicTac suggested bringing in “trusted U.S. technology”, which partners labeled as Oracle.
Some CFIUS experts have approved the deal in the U.S. He said it would indicate a major departure from traditional national security reviews of contracts made by the Civil Services.
“It came to our attention. It seems to be in the hands of politicians rather than professional syphilis staff,” said Paul Marquard, regulatory attorney at Cleary Gatlieb Stein & Hamilton LLP. “What is extraordinary here is how public and political this process is, and negotiations will continue after the exemption order is issued.”
Despite the popularity of viral dance videos on TikTok Teen Mobs, U.S. officials have been concerned since last year about whether the personal information of 100 million U.S. consumers could compromise Chinese ownership.
ByteDance plan to impose restrictions on tick control. It requires CFIUS to approve operating settings similar to those implemented when Softbank Group Corporation <9984.T> allowed access to the US wireless carrier Sprint in 2013. This includes accepting the U.S. government’s board of directors and its relationship with key sellers.
Ellison fundraising for Trump, and Oracle chief executive Safra Katz, who supported Trump’s transition team four years ago, hopes the chances will increase.
The U.S. government does not make a payment agreement
Leading investors in ByteDance, General Atlantic, Sequoia Capital, and Quote Management LLC are in talks to acquire a minority stake in TikTok, but their participation in the deal is uncertain, a source said.
Wal-Mart Inc.’s involvement in the transaction is uncertain after bitcoin’s rejection of retail giant Microsoft Corporation.
Walmart and investment firms did not immediately respond to requests for comment.
Trump said last month that most of Bytedance’s revenue should go to the U.S. government by selling a stake in TikTok, because we make this deal possible. However, ByteDance hints that no such fee is required.
China began the process last month by updating its export control laws on transferring technology such as the TikTok recommendation algorithm to a foreign buyer. Chinese officials say the U.S. should not force bait dancing into a deal.
Reuters reported last week that the Chinese government is looking at closing TikTok in the US without seeing it as part of a forced sale.
Chinese authorities are not required to apply for TikTok’s algorithm export license for specific transactions with Oracle.