According to a proposal submitted to the U.S. government, byte hop has decided to keep tiktok's headquarters in the United States, people familiar with the matter said. Oracle will become a minority shareholder in tiktok. The proposal aims to prevent trump from banning this popular video social app.
The proposal shows that byte jitter is still the controlling shareholder of tiktok. Oracle will hold a minority stake in tiktok, and other U.S. investors may include Wal Mart, the world's largest retailer that has been bidding with Microsoft, and Wal Mart may also have a minority stake. People familiar with the negotiation process stressed that the details could change.
Steven, Secretary of the Treasury
On August 6, trump issued an executive order requiring tiktok's U.S. business to be sold by September 20, and threatened to ban the video app in the US. It is unclear whether tiktok's ownership and management structure will meet his requirements.
Oracle and byte skipping did not comment on this.
According to people familiar with the matter, an independent third party will serve as an independent director of tiktok. Byte skipping will continue to retain tiktok's control and core algorithm.
TikTok US data will be stored in the us with Oracle as the data service provider to allay U.S. national security concerns, people familiar with the matter said.
The Committee on foreign investment in the United States (CFIUS) is an inter agency government organization with the power to prohibit specific transactions on the grounds of national security. CFIUS had already put forward proposals before trump threatened to ban tiktok in August. Byte jitter this submission plan is consistent with previous CFIUS recommendations.
After trump intervened in the sale of tiktok, the Chinese government issued new regulations on the import and export of technology. According to relevant regulations, byte skipping cannot export its algorithm.
Two people involved in the negotiations said that byte beat proposed to keep tiktok headquarters in the United States, while planning to expand the local team by 20000 people. This is an election year, and now millions of Americans are out of work because of the new epidemic. In addition, Oracle founder Larry Ellison and CEO safra Catz are one of the few Silicon Valley executives who publicly support Trump's government, and their participation is likely to make a positive impression on trump.
Beijing also expressed support for the plan, according to people familiar with the matter.
Relevant people said that before trump threatened to ban tiktok in the United States, byte beat had discussed with Microsoft the plan of establishing a joint venture and Microsoft taking small shares.
However, as the date of the ban threat approaches, the negotiation between byte hop and Microsoft has shifted from a joint venture to a wholly-owned acquisition of tiktok's businesses in the United States, Canada, Australia and New Zealand.
On September 13, Microsoft issued an official statement saying that byte hop rejected the company's acquisition proposal, which Microsoft believed was beneficial to tiktok users and could protect the national security and interests of the United States.
Microsoft said in a statement: