On 21st September, ByteDance which is a Chinese company has clearly said that the video app, TikTok’s international business will come under it as a subsidiary. While, Oracle and Walmart Inc. informed that, along with them, the US investors would be the owner of the major part of the video app.
Even when, Donald Trump, the President of US has reportedly, the previous week, that he backed an agreement in theory that might enable TikTok to continue working in the US, ByteDance, however on the other side, also said it is going to have 80% of TikTok, a recently founded American company that could control much of the application’s operations around the world.
As per the Chinese media organization, Toutiao, the Chinese corporation said in a tweet that it’s indeed a “rumor” about US investors will be the controlling owners of TikTok Global. ByteDance stated that it would maintain absolute ownership of its cherished social networking systems and give Oracle selective access to the source code for ‘security’ purposes exclusively.
In addition, ByteDance has announced that it will include a limited round of pre-IPO (initial public offering) funding. The Chinese company also said TikTok Global’s board members would include Zhang Yiming, owner of ByteDance, and also Doug McMillon, CEO of Walmart, and existing executives of ByteDance. Besides that, the Beijing-based business also said the $5 billion contributions that TikTok Global is supposed to make to the US Treasury is focused on the projected sales as well as other taxation that the business will have to spend over the next five years and has little to do with arrangement concluded with Oracle as well as Walmart.
In the meantime, US President Donald Trump declared his approval for the agreed TikTok contract with Oracle along with Walmart also on the Chinese social network app’s US activities.