'Not ready for Oracle-TikTok deal,' Donald Trump questions Chinese tech firm ByteDance's plan to keep majority stake

The US government is currently evaluating a proposal from ByteDance and Oracle designed to resolve the Trump administration's national security concerns about TikTok

Agence France-Presse September 17, 2020 08:57:42 IST
'Not ready for Oracle-TikTok deal,' Donald Trump questions Chinese tech firm ByteDance's plan to keep majority stake

Washington: US President Donald Trump said on Wednesday he wasn't ready to approve a deal for an American company to partner with Chinese-owned video app TikTok, which would allow it to continue operating in the United States.

The president said the day before that Silicon Valley tech giant Oracle was "very close" to agreeing to become the "trusted technology provider" to the app, a condition demanded by Washington to assuage fears that TikTok is a national security threat.

However Trump on Wednesday said such a deal had not yet been reached but he would be meeting with officials about it on Thursday.

"It has to be 100 percent as far as national security is concerned. And no, I'm not prepared to sign off on anything. I need to see the deal," Trump told reporters ahead of the 20 September deadline for TikTok's owner ByteDance to sell its US operations or face the app's shutdown in the country.

He also said he opposed an arrangement reported by media outlets in which ByteDance would keep a majority stake in the company and Oracle a minority stake.

"We don't like that. Conceptually, I can tell you I don't like that," Trump said.

Citing unnamed sources, Bloomberg reported earlier in the day that Oracle's proposal fell short of addressing the Trump administration's concerns over national security, though the deal remains under discussion.

The Financial Times had earlier reported that ByteDance was to place TikTok's global business in a new US-headquartered company with Oracle investing as a minority shareholder along with other US investors.

The TikTok saga has seen several twists, with Microsoft seen initially as the suitor before its bid was rejected.

Chinese authorities have said they would not allow ByteDance to sell the algorithms used by TikTok which are believed to hold much of the value for the popular social platform.

TikTok said in a statement that "we've submitted a proposal to the Treasury Department which we believe would resolve the Administration's security concerns" and allow the app to continue to be used by 100 million people in the US.

Trump has demanded a significant portion of the sale go to the US Treasury, but said Wednesday he'd been advised that wasn't possible.

"I want a big chunk of that money to go to the United States government because we made it possible. And the lawyers come back to me and they say there is no way of doing that because nobody has ever heard of that before," he said.

Updated Date:

also read

Iran to open legal battle before International Court of Justice to unfreeze billions in US assets
World

Iran to open legal battle before International Court of Justice to unfreeze billions in US assets

The case before the International Court of Justice comes as hopes fade of reviving a landmark deal, which former US president Donald Trump withdrew from in 2018, that sought to tame Iran's nuclear ambitions

Raymond Dearie, a veteran New York judge, named arbiter in Trump Mar-a-Lago probe
World

Raymond Dearie, a veteran New York judge, named arbiter in Trump Mar-a-Lago probe

US District Judge Aileen Cannon empowered the newly named special master, Raymond Dearie, to review the entire tranche of records taken in the 8 August, 2022, search of Mar-a-Lago and set a November deadline for his work

Need for 'peace and stability' in Taiwan Strait: Blinken to Chinese counterpart
World

Need for 'peace and stability' in Taiwan Strait: Blinken to Chinese counterpart

Secretary of State Antony Blinken emphasised that the United States is committed to maintaining peace and stability across the Taiwan Strait, consistent with its longstanding one-China policy