Threatened for the umpteenth time to be banned from app stores in the United States, TikTok was saved at the last moment this Sunday, September 20. An agreement has been reached which would bring in the Oracle / Walmart duo with a 20% stake in the Chinese group ByteDance, which owns the application. All with the blessing of President Trump. A possible IPO could take place in 2021.
A victory for Trump
It was ByteDance himself who unveiled the terms of the agreement which Bloomberg published the outline. A new entity called TikTok Global would be created. Oracle, a software giant, would take 12.5% of the capital and become its technological partner on American soil. Walmart, the giant of the mass distribution, would grab 7.5% of the capital and would be its business partner. This would represent approximately $ 12 billion.
The pledges given to Trump are numerous: the transfer of American user data to servers in the United States, four out of five board members, the founding of a head office in Texas, the creation of 25,000 jobs, and insurance. that most of the capital is American. In addition to the 20% of Oracle and Walmart, it will indeed continue to count with the 40% of American investors of ByteDance.
In the end, the only thing Donald Trump will not have obtained is a large sum in the United States Treasury. Despite everything, this case can be seen as a huge hold-up by the United States on a foreign technology company. And this comes at the right time for the candidate for re-election who is in the middle of the campaign.