US investors, Oracle set to own majority stake in TikTok Global: Report

Topics United States | Oracle | TikTok

The new company, dubbed TikTok Global, will have a majority of American directors, a U.S. chief executive and a security expert on the board | Photo: Reuters

WASHINGTON (Reuters) - U.S. investors, including Oracle Corp, are set to hold at least a 60% stake in TikTok, a person briefed on the matter told Reuters.

The U.S. Treasury submitted a revised term sheet to ByteDance late Wednesday to address national security concerns that was agreed to by the Chinese parent of TikTok, the source said.

The new company, called TikTok Global, will have a majority of American directors and a U.S. chief executive. Oracle has agreed to take a 20% stake in the company when it is created and Walmart Inc is also expected to take an equity stake and have a seat on TikTok Global's board, the source said.

It is still not clear if U.S. President Donald Trump will sign off on the detail.

Trump said he Wednesday he did not like the idea of U.S. investors holding a minority stake. "Conceptually, I can tell you that I don't like that," Trump said.

U.S. investors currently have a 40% stake in ByteDance, including Sequoia Capital and General Atlantic. After Oracle and Walmart invested in TikTok Global, U.S. investors would own a significant majority, the source said.

While TikTok is best known for dancing videos that go viral among teenagers, U.S. officials are concerned user information could be passed to China's Communist Party government. TikTok, which has as many as 100 million U.S. users, has said it would never share such data with Chinese authorities.

It is not clear what Oracle will pay for its stake. Oracle and Treasury did not immediately comment.

White House Chief of Staff Mark Meadows said on Thursday that the administration is still looking at details of the deal and whether it meets national security thresholds. Meadows said if TikTok remains predominantly Chinese-run under the Oracle deal, that would not meet President Donald Trump's objectives.

CNBC and Bloomberg News reported some details of the ByteDance Treasury agreement earlier.

 

(Reporting by David Shepardson; Editing by Chizu Nomiyama and Nick Zieminski)


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel