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The president of the United States, Donald Trump, warned this Monday that It won’t approve a deal on TikTok if the Chinese group that owns the popular app retains control.
These comments raised concerns about the fate of the agreement reached over the weekend to circumvent the US-ordered blockade against the application, which Trump considers a national security risk.
The president was questioned in an interview with the Fox News network about the possibility that the Chinese company ByteDance retains 80% of the shares and replied that If US companies Oracle and Walmart do not have “total control,” it will not approve a deal.
Trump indicated that Oracle and Walmart “have a partnership” for TikTok and assured that “they will have total control.” “They are going to have a control game. Everything is going to go to the cloud,” he said.
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However, the details of the participation are not clear and according to the different counts, the percentages of shares that would remain in the hands of the United States and China and especially who would control the data and algorithms vary.
The social network TikTok -which allows creating short videos, generally playful- is under threat of a ban in the United States -where it has more than 100 million users- since Washington accuses the company, without giving evidence, of spying for the Beijing government.
On Saturday the popular application, very focused on the young market, confirmed a project to create a partnership called TikTok Global with Oracle as a technology partner and with Walmart as a commercial contribution to the United States.
Trump indicated that Oracle and Walmart “have a partnership” for TikTok and assured that “they will have total control.”
Alex Plavevski / EFE
The battle for data and algorithm
ByteDance, which in turn is under pressure from the Chinese government not to give in to the claims of the United States, said it would retain 80% control in the company TikTok Global after going public.
(Read also: What is known so far about the TikTok deal)
The Chinese company indicated that the plan does not involve “transfer of algorithm or technology” and indicated that information in this regard is “rumors.”
The statement from the US companies offers another version of the controlling majority. “With the creation of TikTok Global, Oracle / Walmart will make their investments and the shares of TikTok Global will be distributed to their owners, the Americans will be the majority,” said Oracle Vice President Ken Glueck.
The application is the latest crystallization of the confrontation between Beijing and Washington that has already weighed down the telephony giant Huawei and that threatens the use of the Chinese application WeChat in the United States.
(Also: How is Douyin, the Chinese TikTok?)
Weekend, China’s Commerce Ministry condemned the US actions, calling them “bullying”, claimed that they violate international trade rules and noted that there is no evidence that TikTok is a threat.
Some analysts expressed skepticism that an agreement could be worked out that would be approved by the United States and China. “It seems that Oracle and TikTok have made enough concessions to the US government and now it is necessary to see if these concessions are too much for China,” said independent analyst Richard Windsor in a blog post.
The plan unveiled over the weekend would allow Oracle to buy 12.5% of TikTok and Walmart 7.5%, under an offer that would value the platform at $ 60 billion.
Roman Pilipey / EFE
The plan unveiled over the weekend would allow Oracle to buy 12.5% of TikTok and Walmart 7.5%, under an offer that would value the platform at $ 60 billion.
(We recommend you read: Why does Trump have his eyes on TikTok?)
The percentage that would remain in Chinese hands is controversial given that ByteDance has a 40% US stake. Also in doubt is a claim by Trump that the new entity will make a $ 5 billion contribution to a “patriotic education” initiative.
Oracle and Walmart indicated that TikTok Global will pay “more than 5,000 million” in taxes for the United States, as part of the plan, which according to US officials will create 25,000 new jobs in the country.
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AFP
