ByteDance, Oracle Clash Over TikTok Deal Ownership
ByteDance and Oracle have differing views on a TikTok deal, with ByteDance claiming 80% ownership and Oracle stating ByteDance will lose all stake. Meanwhile, Chinese netizens and officials debate the Oracle/Walmart acquisition's impact on China's interests.
ByteDance, TikTok's parent company, agreed to sell a portion of its operations to U.S. companies Walmart and Oracle, forming TikTok Global. The deal, approved by President Trump on September 19, involves Oracle and Silver Lake holding more than 80% of the shares, with Oracle responsible for U.S. user data security and algorithm access.
China's new AI export restrictions have affected the deal, while some Chinese netizens support it, and others, including Global Times, view it as harmful to China's interests. ByteDance has agreed to limit tech transfers and allow Oracle and Walmart to see TikTok's source code. However, Trump previously threatened a ban if TikTok remained under Chinese ownership, and he stated that ByteDance retaining any ownership would halt the deal. With 40% of ByteDance already owned by American investors, the total American shareholding in TikTok Global could exceed 50%.
The Oracle/Walmart acquisition of TikTok Global is complete, with ByteDance's 80% ownership claim disputed by Oracle. The deal's impact on China's interests remains a topic of debate among Chinese netizens and officials. Despite China's new AI export restrictions, the deal proceeds, securing U.S. user data and algorithm access for Oracle and Silver Lake.
