THE TikTok DEAL LOOKS PRETTY CONFUSING, DESPITE ORACLE CLAIMS
The stories surrounding the TikTok deal proves more confusing than it was despite Oracle emerging as the hot brand’s “trusted tech partner” for the U.S. TikTok’s operations. This comes after President Donal Trump made it clear that he has given his stamp approval “in concept” on the Oracle bid, according to Bloomberg reports. Though, this deal as earlier noted by The Wall Street Journal wouldn’t be structured as an outright sale.
Prior to the latest, Microsoft which was referred to as the app’s U.S. operations front-runner surprisingly faced out of the picture, and as soon as that happened, the tech giant made it clear that TikTok’s parent company ByteDance rejected its bid, and stated that:
“We are confident our proposal would have been good for TikTok’s users, while protecting national security interests”, stating that Microsoft would make “significant changes” around areas of concerns. “We look forward to seeing how the service evolves in these important areas”, it added.
Surprisingly, Chinese State media, precisely CGTN which was told by sources that TikTok’s ByteDance won’t give its source code to any U.S. buyer. While in the same vein, a source equally notified the South China Morning Post that the tech’s parent company has decided not to sell or transfer the source code behind its short video app. On top of that (TikTok deal), ByteDance made it clear that it won’t react to market rumors.
To ascertain how confusing the deal is, claims from Oracle and ByteDance continues to differ from what we think we know. However, according to Bloomberg’s previous reports which points at what Trump said that “I have given the deal my blessing” while leaving the White House for a campaign rally in North Carolina. Adding that, “I have approved the deal in concept”. Based on that, the Trump administration had demanded that ByteDance data handling policies and popularity in the U.S. posed a national security threat, and as such, would require an outright purchase and totally controlled by a U.S. company.
In addition to what Trump said, reports from Bloomberg had it that the new company would be headquartered in Texas, and would potentially hire as many as 25,000 people while contributing $5 billion towards the United States education.
Meanwhile, as the hot app’s saga continues, it’s evident that the latest deal did not solve anything, rather made things more confusing, even when we thought the saga surrounding the subject app seems to be over, it became obvious that the misplaced security concerns hovering along multi-billion dollar companies are enclosed in the interest of naked greed while demanding that the United States government gets a chunk of the profits.
According to analysts, it’s equally evident that the TikTok deal is nothing but a political mastermind move aim to boost the cloud infrastructure business of key supporters of the Trump administration. Should the deal go through! These cloud service providers will take a 20% stake in what will be called ‘TikTok Global’, and as such, when it eventually goes public on the American stock exchange.
ByteDance made it clear that it will still retain an 80 percent stake, which means a majority of TikTok after the sale of 20 percent to Oracle – it’s ‘trusted technology partner’, and Walmart, it’s ‘commercial partner’. But contrary to these claims, Oracle said ByteDance will be entitled to zero percent (0%).
Based on estimates, the terms of the hot app’s deal that will be valued at about $60 billion will be distributed accordingly as TikTok Global stake.
In view of this, President ‘Donald Trump’ spoke out concerning the app’s deal, via CNBC, arguing that TikTok must be completely controlled by Americans. While prior to that, vice president ‘Ken Glueck’ of Oracle said that “Upon creation of TikTok Global, Oracle or Walmart will make their investment and TikTok Global shares will be distributed to their owners, Americans will be the majority and ByteDance will have no ownership in TokTok Global”.
Now the question is, how can a company gradually own a majority of such company and a zero percent of a company?
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