The US TikTok takeover agreement being worked out by President Donald Trump and Chinese President Xi Jinping, has added Oracle and private equity company Silver Lake as key investors, Reuters reported.
The US White House official who first revealed the news noted Trump would sign an executive order certifying the deal is legal and is confident China has approved the deal, but added more paperwork is required, the news agency wrote.
Certain regulatory reviews in China and the US are still required. The complete investor group has not yet been disclosed.
China Foreign Ministry representative Guo Jiakun said at a regular briefing on the 22nd September that the Chinese government “respects the wishes of the company in question and would be happy to see productive commercial negotiations”.
Reuters stated the new owners of US-based TikTok are set to take around an 80 per cent stake and would lease a copy of the platform’s algorithm from ByteDance, with Oracle overseeing a revamp, and operating and monitoring the business.
The Wall Street Journal previously reported Oracle co-founder Larry Ellison would be involved in retraining TikTok and the company would store user data on US-based servers.
ByteDance is to divest its interest to less than 20 per cent and have no access to user data or control over the algorithm in the US.
Source: Mobile World Live
Image Credit: TikTok