In an effort to salvage TikTok, the Trump administration is collaborating with Oracle and investors such as Microsoft, allowing ByteDance to retain a minority interest. With a possible $200 billion price tag and Oracle's monitoring to lower Chinese ownership, negotiations are still going on to complete the acquisition.
According to an NPR article citing sources, the Donald Trump administration is developing a plan to rescue TikTok by enlisting Oracle and a group of outside investors, including Microsoft, to take over the short-video app. Oracle may oversee the app's algorithm, data collecting, and software updates as part of the rumored transaction, but TikTok's Chinese owner ByteDance is reportedly still holding a minority position in the business.According to reports, Oracle executives and White House officials met Friday to discuss the possible deal; another meeting is planned for next week. The deal would allow American investors in TikTok to acquire the bulk of the app. The report does note, though, that the parameters of the agreement are still being negotiated and could alter at any time.
"The objective is for Oracle to efficiently oversee and monitor the activities involving TikTok,"ByteDance would reduce Chinese ownership, but it wouldn't completely disappear," an NPR source stated.
How much will TikTok sell for?
According to reports, ByteDance estimates it could obtain at least $200 billion for TikTok, according to White House negotiators. This may make the app unaffordable for any of the investor consortiums that have been advertising their bids.
In order to comply with a US federal statute that mandates its Chinese parent firm ByteDance undertake a "qualified divestiture" of the business in order for the app to continue functioning in the US, TikTok was notably knocked offline for almost 14 hours in the US. Trump handed TikTok an additional seventy-five days to abide by the federal law after taking office on January 20.
Prior to signing the executive order, Trump posted on his social media platform Truth Social, "My initial thought is a joint venture between the current owners and/or new owners whereby the U.S. gets a 50% ownership in a joint venture set up between the U.S. and whichever purchase we so choose."
In order to comply with a US federal statute that mandates its Chinese parent firm ByteDance undertake a "qualified divestiture" of the business in order for the app to continue functioning in the US, TikTok was notably knocked offline for almost 14 hours in the US. Trump handed TikTok an additional seventy-five days to abide by the federal law after taking office on January 20.
Prior to signing the executive order, Trump posted on his social media platform Truth Social, "My initial thought is a joint venture between the current owners and/or new owners whereby the U.S. gets a 50% ownership in a joint venture set up between the U.S. and whichever purchase we so choose."
0 Comments