President Trump will decide on the deal submitted to alleviate the national security concerns regarding the widespread use of the Chinese software TokTok within 36 hours, according to news reports.
Oracle will take a 20% stake in the company and Walmart is also reportedly involved.
The issue remains however, that the Chinese Communist Party will still retain control of the new entity, making the deal untenable to China hawks within the administration.
Trump said Wednesday he objected to the idea that ByteDance would retain a majority stake in TikTok’s U.S. operations. Still, people familiar with the matter say the ownership stake percentages haven’t been a topic of negotiation and are unlikely to change. Walmart chief executive officer Doug McMillon is expected to have a board seat on the newly formed board of directors for TikTok’s U.S. operations. Walmart didn’t immediately respond for comment, reported CNBC.
“From the standpoint of ByteDance we don’t like that,” Trump said of the Chinese company retaining a majority stake in the business during a press conference yesterday. “I mean, just conceptually I can tell you I don’t like that.”
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