ByteDance puts TikTok deal with Oracle and Walmart on hold

Updated: Feb 28, 2021

ByteDance, the Chinese owner of TikTok, has put their deal to sell parts of their US assets to Oracle and Walmart on hold. According to an inside source, the deal was only created to please former president Trump. With him out of office, the main reason for the deal is gone. The company is continuing their negotiations with the US government about a new deal.

According to an inside source at ByteDance the deal with Oracle was made because its founder Larry Ellison's has a good relationship with Trump. Now that Trump is no longer president, the Chinese company doesn't see a reason to continue the deal. ByteDance is continuing to have negotiations with Biden’s administration to be able to continue their business on US soil. This will likely still mean the company has to sell a part of its business to a US based company.


Last years the US government demanded ByteDance to sell a part of their TikTok app to a US company. This was due to serious concerns about data security, but also Trump's general "tough" stance on China. After long negotiations, ByteDance made a deal with Oracle and Walmart to sell a 20% stake of the video-sharing app.


Last week it already came to light that the deal was shelved, awaiting a review by the current US administration. They wanted to re-investigate the efforts made by Trump to address the safety concerns around TikTok. Inside sources claim that ByteDance hopes the current administration will be satisfied with the safety measures taken by the company to ensure data protection.


The Chinese government has laid down a few guidelines for the deal. One of them is that ByteDance is not allowed to sell its core algorithms to a US entity. The Chinese described this as “the car can be sold, but not the engine”.

 

Source: South China Morning Post

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