A deal to acquire TikTok has hit a new stumbling block after Trump has insisted on total US control over the company. As reported by the BBC, the Trump administration has indicated a deal with Oracle and Walmart must result in total control of TikTok for him to support it.
TikTok users rejoiced earlier in September when Oracle announced a deal to acquire parts of TikTok. This is because they believed this would allow the app to continue to operate in the US. However, after investigations by the Trump administration, it decided that the ban would continue to stand despite the acquisition.
Trump has now insisted on total American control over TikTok. He said, "they will have nothing to do with it. And if they do, we just won't make the deal".
Trump insists on total American control of TikTok
Originally, TikTok owner ByteDance said that it would retain an 80% stake in the new TikTok Global company. However, Trump has said that Oracle and Walmart must have total control over this new company.
He insisted that if they do not have total control then " we are not going to approve the deal". This all comes after Trump originally backed the deal but now seems to have reneged on that support for him to support it.
Oracle and Walmart have also been spreading slightly conflicting messages about the acquisition. Oracle confirmed that it planned a 20% takeover with Walmart. However, its executive vice-president, also said, "Americans will be the majority".
It also pointed out that "ByteDance will have no ownership in TikTok Global". This will be something that Oracle hoped would help Trump begin to support the deal.
ByteDance insists on 80% stake in TikTok global
However, ByteDance has pushed back on the claims of Oracle and Walmart. A statement from the company said that it would keep an 80% stake in TikTok Global. The statement was designed to offer an "explanation of some false rumors".
It also said that the company had heard nothing about Trump's request for companies to contribute to a new education fund. The money is designed to "educate people as to the real history of our country" according to Trump.
The original deal emphasized the co-operative nature between Oracle and TikTok. In China, it was presented less as a takeover and more of a coming together of two companies who would work in partnership with each other.
However, China may still decided not to approve the deal according to Dr Richard Windsor, founder of research firm Radio Free Mobile. Clearly, therefore, this story has a long way to run and it is hard to see any amicable solution coming from all of this but we will have to wait and see.