TikTok’s parent company ByteDance insists on keeping an 80 per cent stake in the video-sharing platform’s restructured U.S. operations.
U.S. federal Judge Nichols of the U.S. District Court of Columbia has ordered the Trump administration to postpone its ban on downloads of TikTok. Trump administration would have to defend itself in court.
TikTok has roughly 100 million users in the United States. On national security claims, Trump claims the app gives Beijing access to the personal data of Americans which threatens national security.
TikTok responded by saying its data centers are located entirely outside of China and none of that data is subject to Chinese law.
Chinese regulators introduced new rules that govern the sale of certain types of technology to buyers outside the country. ByteDance would have to obtain government permission before selling TikTok to a foreign entity.
The TikTok ban was to begin on September 20 but was later postponed to November 12 after the Trump administration offered the company a way out by allowing a U.S. entity to acquire it. Oracle (ORCL) and Walmart Inc. (NYSE: WMT) are in the deal should everything get resolved in TikTok not getting banned in the US. If the deal gets permission the company will be called TikTok Global with Oracle holding a 12.5% stake and Walmart owning 7.5%.