Oracle & Walmart to Buy 20% Stake of the US Operations of Tik TokVignesh Subbaian (Author) Published Date : Sep 22, 2020 10:58 IST
Tik Tok gets one more week extension from the US Department of Commerce from its September 20 deadline to ban in the US set by President Trump. After Walmart and Oracle agree to take a 20% minority stake of the Tik Tok Global to be headquartered in the US.
But today, September 21, Byte Dance, the parent company of Tik Tok, has confirmed that Oracle can only access its US operations source code and not transfer algorithm or technology. Meanwhile, approving the deal in a rally in North Carolina, Trump wants 5 billion USD from Tik Tok Global to teach the real American history.
Tik Tok issue settled for now or not?In August, President Trump warned Tik Tok to sell its 100 % US operations business to US companies or be banned from September 20. The reason cited for it is that the Chinese company is procuring US citizens' data, which may be wrongly used by the Chinese authorities. Trump also wanted critical money or plain terms commission to be given to the American government if the deal is struck.
Initially, Microsoft wanted to use the platform that has millions of US citizens active in it. But later, the deal did not take off. A few days before the deadline of September 20, Oracle wanted to be the minority stakeholder by providing cloud storage for the Tik Tok data of US operations and controlling algorithms and technology.
The Chinese government intervened to not transfer Tik Tok's algorithms and technology to US companies. Now Tik Tok has said that it will comply with the Chinese regulations. But Trump seems to be okay with the minority stake taking by Walmart and Oracle on a condition. It is for a fund to be created by Tik Tok Global with a 5 billion USD corpus to teach Americans the real history and not the fake history. It is to be noted that Trump said it would stop funding for educating New York Times 1619 project launched last year in commemoration of the 400 years of black slavery.
But Monday, September 21, Byte Dance announcing that it will not transfer technology or algorithms to Oracle will affect the deal or not is unknown. With Trump more concerned about the 5 billion USD from the agreement, the US Department of Commerce has extended the deadline to ban Tik Tok by one week. All have to wait until then to know what Trump will do with the extended deadline or be happy with the 5 billion USD to teach the Americans their real history before the elections.
Oracle & Walmart to Buy 20% Stake of the US Operations of Tik Tok