In other words, Americans will not have total control of the company from a governance, ownership or technology standpoint. ByteDance retains some control over the product's core intellectual property. Oracle will own 12.5% of TikTok Global, and Walmart will own 7.5%. Specifically, Americans will have a 4-1 majority on the board of TikTok Global, while ByteDance shareholders - which include American, Chinese and international investors - will own a majority of shares in the company. The bottom line: Trump was wrong when he said on Fox News on Monday that Oracle and Walmart will have total control of TikTok Global, even if you count the U.S.
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and China, mostly investors in Europe.įinally, while Oracle will be able to look at TikTok's source code and block any updates that seem problematic from a security standpoint, ByteDance retains control over the TikTok recommendation algorithm, which decides which videos to recommend next and is a critical factor in the app's popularity and virality among U.S.
Moreover, ByteDance's CEO and founder Zhang Yiming, who also owns a stake, will have a TikTok Global board seat, so there will at least be some governance coming from ByteDance's point of view, even if Yiming is outnumbered on the board four to one.Īnother complicating factor: About 14% of ByteDance is owned by other international investors outside the U.S. How ByteDance sees the deal: ByteDance isn't separating its American VC investors from the rest of its stakeholders, which is why it said it will own 80% of TikTok Global if the current deal goes through. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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