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ByteDance, the parent company of the video sharing app TikTok, put the brakes
on the deal Sunday. Credit...Greg Baker/Agence France-Presse — Getty Images
By David McCabe, Ana Swanson and Michael J. de la Merced
Sept. 21, 2020Updated 5:03 p.m. ET
But ByteDance, the Chinese owner of TikTok, threw cold water on that structure
on Sunday, disputing both Oracle’s and Mr. Trump’s characterization of the
deal. ByteDance said it would hold a majority share of the new company until it
went public within the next year. Oracle said on Monday that as soon as the new
company, TikTok Global, was created, ByteDance would lose its ownership
stake in the service.
Asked during a television appearance on “Fox & Friends” on Monday about the
potential that ByteDance would still own 80 percent of the service, Mr. Trump
said that the Chinese firm would “have nothing to do with it, and if they do, we
just won’t make the deal.”
Mr. Trump said Oracle would have control over TikTok, adding, “If we find that
they don’t have total control, then we’re not going to approve the deal.”
The back and forth underscores how fluid the transaction remains and the risk
that TikTok could still fail to satisfy the government’s national security
concerns. On Saturday, the Commerce Department delayed for one week a plan
to ban TikTok from U.S. app stores while the government reviewed the
transaction. If the deal doesn’t satisfy Mr. Trump’s concerns, new downloads of
TikTok could essentially be banned in the United States.