Select Page

Don't Tread On My Site

Trump Has “Given His Blessing” To TikTok-Oracle Deal As ByteDance Begs US Court To Intervene

Load WordPress Sites in as fast as 37ms!

Trump Has “Given His Blessing” To TikTok-Oracle Deal As ByteDance Begs US Court To Intervene

Tyler Durden

Sat, 09/19/2020 – 18:30

During a briefing with reporters at the White House on Saturday, President Trump confirmed that he had signed off on a proposed deal that would involve spinning off TikTok’s global business into a standalone, US-based company owned by Oracle, ByteDance, Wal-Mart, a group of Silicon Valley VC firms and other investors from China.

“I have given the deal my blessing, if they get it done that’s great, if they don’t that’s fine too,” President Trump told reporters at the White House on Saturday.

Of course, CFIUS still needs to technically sign off on the deal. But that’s not the only obstacle remaining in the way of a spinoff that company insiders say could lead to a US public offering roughly one year from now if everything works out.

<!–[if IE 9]><![endif]–>

Trump’s comments come after the Commerce Department on Friday issued regulations prohibiting American companies from providing downloads or updates for TikTok after 11:59 pm on Sunday. The order also applies to WeChat, another popular Chinese-owned messaging and payments app, that will be subjected to the ban – at least in the US market (the administration has promised that any restrictions won’t apply to American companies doing business in foreign markets like China).

In a statement, TikTok said its “proposal” to Washington included “unprecedented levels of transparency.”

During an earlier briefing on Friday, Trump called TikTok “a pretty incredible asset” and said that the companies appeared close to a deal that would ameliorate security concerns from a group of GOP senators.

If the deal is ultimately structured like a spinoff, regulators in Beijing will likely need to sign off as well, which could create problems. However, there’s been some talk about ByteDance selling TikTok without the content recommendation algorithm at its heart. Beijing has already confirmed, via a leak to the SCMP, that it won’t allow an American company to walk away with TikTok’s algorithm.

ByteDance has already sought help from American courts, arguing that President Trump’s ban was illegal under American law. Unfortunately for the company, invoking “national security” gives Trump broad latitude to act; the courts don’t have much latitude to restrain him, according to Bloomberg.

Following the Commerce Department’s latest order, the company filed another lawsuit late Friday seeking to stop the Commerce Department’s order forcing Apple and Alphabet to drop TikTok from their app stores. TikTok owner ByteDance said it dropped its lawsuit against the Trump Administration, which it filed in California, and filed a new lawsuit in Washington. The company argued that Trump’s ban is “political” in nature, and that Trump is only using national security as a ruse.

TikTok also claimed that the ban violates first amendment protections on free speech.


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

Advertise on Libertarian Hub

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.