Trump administration declared that their months of drama with TikTok ended in success. The US president reported that the agreement between the social media company and Oracle was a great success.
But ByteDance claims that it is not ready to sell the majority of its stake to another company. This proves the US presidents claim to be false.
Trump, however, says that if ByteDance wants to continue TikTok in the US market then the business shares have to be majorly owned by a US firm.
The US administration has been continuously blaming TikTok for its data insecurity. The Trump administration claims that users’ data is been sold to the Chinese administration. TikTok and Wechhat both have been under the radar of the US Government siting risk to national security.
TikTok has 100 million users in the US, and WeChat was downloaded 29,000 times in the country.
by – Bloomberg
TikTok did reject an offer from Microsoft has struck a deal with Oracle—whose leaders are political allies of the US president. The transaction would form a new company called TikTok Global, in which Oracle and Walmart would together take a 20 percent stake.
Walmart and Oracle announced that TikTok Global would be “majority-owned by American investors.” But ByteDance said that TikTok Global would be fully owned by a subsidiary of the company.
ByteDance claims that it will retain 80% of the shares in TikTok Global. But the US administration does not seem to agree. This has further escalated the drama between the Trump administration and the Chinese social media platform.
The main concern of the Trump administration is the technology behind the TikTok. A recent rule imposed by the Chinese government prohibits any Chinese tech company from selling its technology and algorithm to foreign buyers.
ByteDance does not want to transfer its source code or technology.
Despite the law, Oracle and Walmart said in their statement that, “all the TikTok technology will be in possession of TikTok Global, and comply with US laws and privacy regulations.”
The Oracle and Walmart want to please the Trump government whereas ByteDance wants to please the Chinese government.
Do check out:
