TikTok Deal Trips Over U.S.- China Power Struggle
A deal intended to address the Trump administration’s concerns about TikTok’s ties to China was complicated on Monday by a disagreement over whether a U.S. company would control the social media app and the president’s threat to block any agreement that leaves the service in the hands of a Chinese company.
On Saturday, Mr. Trump said he had given his “blessing” to a transaction that he said would result in non-Chinese investors, including Oracle and Walmart, owning TikTok.
But ByteDance, the Chinese owner of TikTok, threw cold water on that structure on Sunday, disputing both Oracle’s and Mr. Trump’s characterization of the deal. ByteDance said it would hold a majority share of the new company until it went public within the next year. Oracle said on Monday that as soon as the new company, TikTok Global, was created, ByteDance would lose its ownership stake in the service.
Asked during a television appearance on “Fox & Friends” on Monday about the potential that ByteDance would still own 80 percent of the service, Mr. Trump said that the Chinese firm would “have nothing to do with it, and if they do, we just won’t make the deal.”
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