Walmart CEO Doug McMillon will join TikTok’s board. But ByteDance founder Zhang Yiming and the Chinese company’s current directors—which include Sequoia China’s Neil Shen and General Atlantic’s William Ford—will reprise their roles. The statement made no mention of Oracle getting a seat, even though ByteDance said Larry Ellison’s company is slated to own 12.5 percent after a round of funding before TikTok Global goes public within a year. Walmart and Oracle have said American citizens will take up four of the five board seats for TikTok Global.
In a blog post entitled “clarifying groundless rumors about TikTok,” ByteDance contested Trump’s assertions his government will get $5 billion as part of the deal. It said that figure was just an estimate of the amount of taxes TikTok Global would pay over several years if the business proved successful.
ByteDance’s statement raises more questions over an arrangement cobbled together over just a few weeks to prevent the banning of the popular social video platform, which the White House accuses of spying on Americans and potentially influencing the elections. The Chinese company is seeking a valuation of $60 billion for TikTok Global, in which ByteDance may end up owning as much as 80 percent after Oracle and Walmart invest.TikTok has emerged as a top target in Trump’s effort to crack down on China ahead of the November U.S. elections. Tensions between Washington and Beijing are escalating as his administration wages a campaign that’s also ensnared Tencent Holdings, whose WeChat app faces a similar ban.
Trump has previously said the White House deserves a cut of the deal for making it possible. On Saturday, he said the companies agreed to pay $5 billion to bankroll an education fund that would teach American children “the real history of our country.” TikTok will pay more than $5 billion in “new tax dollars to the U.S. Treasury” and develop an AI-driven online video curriculum, according to a joint announcement from Oracle and Walmart.
But ByteDance said the promised tax payment had nothing to do with the deal.
“As for the so-called $5 billion tax to the U.S. Treasury, that refers to an estimate of the corporate income tax and other taxes TikTok will have to pay in coming years as part of its business development,” ByteDance added. “TikTok is confident in its future but the actual tax amount will have to be determined in accordance with the actual state of the business and American tax structures.”
While Trump is portraying the agreement as a victory, the business remains under Chinese control. ByteDance said Monday Oracle—which won the right as part of the transaction to review TikTok’s source code for security threats—will only review the software in a controlled environment. ByteDance cited past examples such as Microsoft’s transparency center in China, which lets experts review code in a designated location only.
—Bloomberg News
"control" - Google News
September 21, 2020 at 09:46PM
https://ift.tt/32P3qNJ
Trump says ByteDance can't keep control of TikTok in Oracle deal - AdAge.com
"control" - Google News
https://ift.tt/3bY2j0m
https://ift.tt/2KQD83I
Bagikan Berita Ini
0 Response to "Trump says ByteDance can't keep control of TikTok in Oracle deal - AdAge.com"
Post a Comment