TikTok hopes Trump will endorse statements to approve Oracle deal

Bytance Limited’s Tiktok website is displayed on a smartphone in a systematic photo.

Andrew Harrer | Bloomberg Getty Images

Of the many questions revolving around Tiktok’s fate, the biggest may be that the Trump administration will approve a restructuring plan that keeps China-based ByteDance under control, both economically and operationally, in the US

If you go by his words, President Donald Trump has already rejected this option.

“I set a date for September 15, at which point it’s going to go out of business in the United States,” Trump said at an August 3 press conference. “But if anyone – whether it’s Microsoft or someone else buys it, it will be interesting … so it will close on September 15 until Microsoft or someone else is able to buy it and make a deal, A suitable deal, so that the United States Treasury gets a lot of money. ”

Nevertheless, according to people familiar with the matter, the proposal that Bytdance and Oracle have sent to the US government will put Titotalk under Bytdance’s operational control. Oracle’s role will be as a “trusted technology partner”, storing and securing data within the US campus. Tiktok has also said that he plans to convey his algorithm to third parties.

ByteDance is under discussion with both Oracle and Walmart in US business, according to people familiar with the case, but the sale will not account for 100% of American assets. This is a departure from the deal that was completed several weeks ago at a value of $ 20 billion to $ 30 billion. The transaction fell apart at the 11th hour after China’s retreat, saying it would need to approve an agreement that included exporting artificial intelligence technology used by Tickcock.

Bytdance has submitted an offer that refrains from selling American property or all of Teaktok – which Trump said was necessary to avoid the ban – due to negotiations with CFIUS and Treasury officials, according to people familiar with the matter. Bytdance believes its proposal with Oracle addresses CFIUS concerns based on data sharing of predecessor and U.S. government concerns, one of the people said.

The White House declined to comment. Tiktok declined to comment, and Oracle did not respond to a request for comment.

It is still unclear whether the Trump administration will accept the proposal for the ByteDance deal. Treasury Secretary Steve Mnuchin told CNBC Monday that the US government plans to review the deal this week.

“I would just say from my point of view, we would need to make sure that code is one, secure, Americans’ data is safe, that phones are secure and that we want to discuss with Oracle the next few days with our technology teams, “Mnuchin said” squawk box. “

Plight of kevin mayer

If Trump abandons his previous stance, allowing the application to run in the US without a full sale, Tickcock’s former CEO Kevin Mayer would serve as an unfortunate casualty of Trump’s hyperbole.

Meyer had planned to announce his resignation from Tikotok with the announcement of a deal, according to people familiar with the case. But when news leaked to The Financial Times that he planned to step down when announcing a sale – which was imminent at the time – he pre-empted the announcement of the deal and said he was going down immediately.

Sources said Meyer’s reasoning for leaving was that he had signed on to run a global company with US campaigns. The deal made on the table to call and run Oracle or Microsoft to acquire and run TickTock in the US mayor did not want to run a US-only company as a division of Microsoft or Oracle, and not a CEO. Wanted to be TikTok without America (Mayer lives in Los Angeles.)

Mayer wrote in a letter to employees, “I understand that I have played the role that involves running Tiktok globally – would look very different as a result of the US administration’s push to sell American business.” resigned.

It is now possible that Ticketcock will remain a global company under ByteDance control, which means the mayor will have no reason to step down.

There is more irony for Meyer: He was part of a team that was instrumental in bringing Oracle to the table as a competitive bidder against Microsoft, which first entered negotiations to acquire TikTok American assets in July Kiya, who is familiar with the matter of the people.

The US government became interested in a possible ban of TikTok after India closed the application in late June. ByteDance began negotiations with Microsoft to handle US assets to avoid the ban, with Meyer negotiating with Oracle’s chief executive, Safra Katz, about a possible deal, the people said. Katz is on the board of directors of Walt Disney. Meyer spent more than 20 years at Disney and left the company in May for the job of Tiktok CEO.

Oracle emerged as the partner of ByteDance of choice, which gave the Trump administration close ties to the company and willingness to accept a deal where it did not buy 100% of the assets, two people said.