Beijing unlikely to approve ByteDance-Oracle deal over TikTok
Sep 24 2020
It also denounced a requirement that ByteDance reveal TikTok's source code to Oracle as part of the deal and separate the management of TikTok from its Chinese equivalent Douyin.
Because ByteDance will still own the algorithm that runs TikTok and license it to the new USA -based company, the new company will not need to hire large teams that work on artificial intelligence.
Oracle has also said that the Beijing-based firm itself would have no stake in TikTok Global. A statement from the company said that it would keep an 80% stake in TikTok Global.
He added that if the government ever finds that Oracle does not have total control over TikTok, the deal would not be approved.
All U.S. data and security systems would be hosted by Oracle. They hurt China's national security, interests and dignity. Oracle will own a 12.5 per cent stake in the new company, while Walmart will take a 7.5 per cent stake.
"From the information provided by the US, the deal was unfair".
The Global Times is a tabloid published by the People's Daily, the official newspaper of China's ruling Communist Party, but does not speak on behalf of the party and government unlike its parent publication.
It is reported that the deal requires approval from regulators in both Beijing and Washington, ByteDance has said.
Even as dealmakers bicker over who will actually own TikTok Global, another question has emerged: how can TikTok possibly create 25,000 new jobs in the United States?
They also said that four of TikTok Global's five-member board would be American.
TikTok has never been available in China. It has said it has more than 100 million monthly active USA users, compared with 600 million daily users at mainland equivalent Douyin.
"As TikTok and Douyin should have the same source code, this means the USA can get to know the operations of Douyin", the editorial continued. For its part, TikTok denies the charge, and even the Central Intelligence Agency recently said it has not seen evidence of the Chinese government accessing user data.
If TikTok operated at anywhere near the efficiency of other internet companies such as Twitter, TikTok would need to generate up to 19 times more revenue over the next few years.
That vow, repeated by the president on Saturday at a campaign rally in North Carolina, was part of a concession that dealmakers offered to convince President Trump to green-light a transaction in which a new board comprised of USA citizens would oversee a new US -based company and co-owned by Oracle Corp and Walmart.