ByteDance says It's Going to have 80% of TikTok Global, contradicts Trump's claims bargain has'nothing to do with China'
ByteDance is going to have a bulk 80% stake in the new U.S.-based TikTok company.
The company said that it plans to perform a small round of pre-IPO (initial public offering) funding that'll give ByteDance an 80% stake in TikTok Global.
ByteDance's majority ownership appears to refute a claim made by President Donald Trump that the deal"will not have anything to do with China."
Beijing-based ByteDance stated it would have a vast majority stake in the new TikTok Global from the U.S., appearing to oppose President Donald Trump's asserts that the deal has"nothing to do with China."
On Saturday, Trump gave his blessing to a deal that could see Oracle and Walmart have a minority stake in a U.S.-headquartered company named TikTok Global. Oracle would develop into the stable cloud supplier and host American users' information in the nation.
"It'll be a brand new company. It will have nothing to do with any outside land, any external nation, it will not have anything to do with China," Trump said.
However, in a Chinese-language statement on Monday, ByteDance, the Beijing-based parent company of TikTok, insisted it was not losing control of social networking program.
The business said it plans to carry out a small round of pre-IPO (initial public offering) financing that'll give ByteDance an 80% stake in TikTok Global. Included in the deal, Oracle, Walmart and ByteDance consented to record TikTok Global within an American stock exchange within 12 months.
TikTok confronted being shut down on Sunday but that decision has been postponed for a week, according to the Department of Commerce.
In early August, Trump stated that TikTok would be shut down in the U.S. unless an American firm bought it.
"So it'll close down on Sept. 15 unless Microsoft or somebody else can purchase it and work out a deal, an proper deal, so the Treasury of the United States receives a whole lot of cash," Trump said at that moment.
However, TikTok isn't being acquired and is going to have the majority stake. But because 40% of ByteDance is possessed by U.S. venture capital companies, the Trump government can technically claim TikTok Global is now majority owned by U.S. cash.
Before ByteDance's Chinese statement Monday, CNBC reported that the business would retain an 80% stake in TikTok Global. He included ByteDance would just be a"passive shareholder."
"I used to do oil deals all of the time. I didn't have some access to this company's information. I just got a royalty check, right? That is the situation -- only a passive person who collects writes or money a test if the organization is not performing well. No access to this company, no decision-making ability, to ability to peer into what they are doing; only a passive shareholder," Pompeo said, based on an official transcript.
Trump has also previously said the U.S. Treasury must get a cut of almost any deal involving TikTok. Oracle and Walmart stated in a joint announcement on Saturday that the international TikTok company will pay over $5 billion in new taxes into the U.S. Treasury Department.
ByteDance clarified on Monday, however, this is just a"forecast" of corporate taxes and other taxes which TikTok Global will have to cover business growth during the next few years. The Chinese technology firm added that the tax will need to be determined according to how TikTok Global develops, noting the $5 billion figure has"nothing to do" with deal with Oracle and Walmart.
Oracle will even get to scrutinize the source code for TikTok, however, ByteDance stated it won't be moving algorithms or technology into the U.S. company.
Washington claims that TikTok signifies a national security threat because it gathers U.S. user information that can be accessed by Beijing. TikTok has repeatedly denied that.
The company said that it plans to perform a small round of pre-IPO (initial public offering) funding that'll give ByteDance an 80% stake in TikTok Global.
ByteDance's majority ownership appears to refute a claim made by President Donald Trump that the deal"will not have anything to do with China."
Beijing-based ByteDance stated it would have a vast majority stake in the new TikTok Global from the U.S., appearing to oppose President Donald Trump's asserts that the deal has"nothing to do with China."
On Saturday, Trump gave his blessing to a deal that could see Oracle and Walmart have a minority stake in a U.S.-headquartered company named TikTok Global. Oracle would develop into the stable cloud supplier and host American users' information in the nation.
"It'll be a brand new company. It will have nothing to do with any outside land, any external nation, it will not have anything to do with China," Trump said.
However, in a Chinese-language statement on Monday, ByteDance, the Beijing-based parent company of TikTok, insisted it was not losing control of social networking program.
The business said it plans to carry out a small round of pre-IPO (initial public offering) financing that'll give ByteDance an 80% stake in TikTok Global. Included in the deal, Oracle, Walmart and ByteDance consented to record TikTok Global within an American stock exchange within 12 months.
TikTok confronted being shut down on Sunday but that decision has been postponed for a week, according to the Department of Commerce.
In early August, Trump stated that TikTok would be shut down in the U.S. unless an American firm bought it.
"So it'll close down on Sept. 15 unless Microsoft or somebody else can purchase it and work out a deal, an proper deal, so the Treasury of the United States receives a whole lot of cash," Trump said at that moment.
However, TikTok isn't being acquired and is going to have the majority stake. But because 40% of ByteDance is possessed by U.S. venture capital companies, the Trump government can technically claim TikTok Global is now majority owned by U.S. cash.
Before ByteDance's Chinese statement Monday, CNBC reported that the business would retain an 80% stake in TikTok Global. He included ByteDance would just be a"passive shareholder."
"I used to do oil deals all of the time. I didn't have some access to this company's information. I just got a royalty check, right? That is the situation -- only a passive person who collects writes or money a test if the organization is not performing well. No access to this company, no decision-making ability, to ability to peer into what they are doing; only a passive shareholder," Pompeo said, based on an official transcript.
Trump has also previously said the U.S. Treasury must get a cut of almost any deal involving TikTok. Oracle and Walmart stated in a joint announcement on Saturday that the international TikTok company will pay over $5 billion in new taxes into the U.S. Treasury Department.
ByteDance clarified on Monday, however, this is just a"forecast" of corporate taxes and other taxes which TikTok Global will have to cover business growth during the next few years. The Chinese technology firm added that the tax will need to be determined according to how TikTok Global develops, noting the $5 billion figure has"nothing to do" with deal with Oracle and Walmart.
Oracle will even get to scrutinize the source code for TikTok, however, ByteDance stated it won't be moving algorithms or technology into the U.S. company.
Washington claims that TikTok signifies a national security threat because it gathers U.S. user information that can be accessed by Beijing. TikTok has repeatedly denied that.