China's ByteDance has decided to place the headquarters of its popular video platform app TikTok in the US in order to escape President Donald Trump's ban, official media here reported on Wednesday.
China's ByteDance has decided to place the headquarters of its popular video platform app TikTok in the US in order to escape President Donald Trump's ban, official media here reported on Wednesday.
As per the plan presented
to the US officials by ByteDance, TikTok will remain the majority shareholder
of the new US headquartered company, and tech firm Oracle will be a minority
shareholder, state-run CGTN TV reported.
Other potential US
investors such as the world's largest retailer Walmart, which had launched a
joint bid with Microsoft, would own a minority stake, the report said.
People familiar with the
negotiation process emphasised that specific details of the plan may change.
Independent third parties
will serve as directors of the new company, and ByteDance will continue to
control TikTok
and its core algorithms.
In order to allay US
concerns about "national security," TikTok's data from America will
be stored in the US and Oracle will serve as the data service provider, the
report said.
"There's also a
commitment to create TikTok Global as a US headquartered company with 20,000
new jobs," Treasury Secretary Steven Mnuchin said on Monday in an
interview with CNBC, adding that Oracle will be the trusted technology partner.
ByteDance on Monday said it
will not sell TikTok's US operations to Microsoft or Oracle, nor will the
company give the source code to any U.S. buyers.
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