According to the latest report from the Financial Times, a person familiar with the matter revealed that according to a proposal submitted to the US government, Bytedance has decided to keep TikTok’s headquarters in the US, and it is still TikTok’s controlling shareholder, and Oracle will hold a minority. TikTok equity, other U.S. investors may include Wal-Mart, the world’s largest retailer, which once bid with Microsoft, may also hold a minority stake, but the final details may also change.
It is reported that independent third parties will serve as independent directors of TikTok. ByteDance will continue to retain TikTok’s control and core algorithms.
U.S. hawkish Senator Josh Holley publicly called on the U.S. Treasury Department to reject the proposed cooperation between Oracle and TikTok, saying that this move is unacceptable due to national security considerations. Holly wrote in the open letter: “The Foreign Investment Committee should immediately reject any cooperation plan between Oracle and ByteDance, so that the company can come up with a more acceptable solution.” He also asked ByteDance to integrate TikTok business and code. And the algorithm “sell all to a U.S. company”, otherwise the U.S. should “completely ban TikTok.”
Earlier, the U.S. Secretary of the Treasury and Chairman of the Committee on Foreign Investment Numchin stated that Oracle will serve as TikTok’s trusted data security compliance partner and establish a cooperative relationship with ByteDance.