Oracle, Walmart, and Others Propose Acquiring 50% Stake in TikTok After Trump Rejection

Including US Stock Market IPO Plans Within 1 Year
CNBC "Decision Expected Within Next 24-36 Hours"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jaehee] A plan for U.S. companies including Oracle to acquire more than 50% of the shares of the Chinese video-sharing application 'TikTok' is being strongly discussed ahead of the deadline for its potential ban. Initially, TikTok's parent company, China's ByteDance, pursued a method to maintain its position as the largest shareholder while forming a technology partnership with the U.S. IT company Oracle. However, when the Trump administration expressed reluctance, stating that national security threats could not be resolved, a new negotiation plan was proposed.

On the 17th (local time), The Wall Street Journal (WSJ) reported that negotiations are underway for U.S. companies including Oracle to secure a majority stake in TikTok. Along with Oracle, Walmart, Sequoia Capital, General Atlantic, and Coatue Management?investors in ByteDance within the U.S.?are expected to secure 50% of the shares. CNBC reported that this includes a plan for Oracle to own 20% of TikTok's shares.

Initially, ByteDance stated its intention to separate TikTok into a new company headquartered in the U.S. while maintaining more than 50% ownership. Even after selecting Oracle as a negotiation partner, ByteDance emphasized that it was not a sale but a technology partnership securing a minority stake. However, when President Trump expressed discomfort, saying "I don't like it," it is reported that concerns arose that such a negotiation plan would be rejected.

Currently, ByteDance's shareholding structure consists of 40% held by U.S.-based investors such as General Atlantic, Sequoia Capital, and Coatue Management; 25% by founder Zhang Yiming; 20% by ByteDance employees; and the remainder by overseas investors outside the U.S.

Regarding this, President Trump said in a press meeting at the White House in the afternoon, "Government officials had talks with delegations from Oracle and Walmart this morning," adding, "I understand Microsoft is still included."

Along with this, TikTok plans to hold an initial public offering (IPO) on the U.S. stock market within the next year to satisfy the White House. Bloomberg reported that ByteDance is planning an IPO by establishing 'TikTok Global' (tentative name), which will handle TikTok's U.S. business division together with Oracle. It was also revealed that Doug McMillon, CEO of Walmart, may take a director position at TikTok in the future.

CNBC reported that the Trump administration is expected to decide on TikTok's U.S. business within a day or two. The U.S. government's set deadline for the sale is the 20th of this month.

Even if approved by the U.S. government, TikTok's U.S. business is expected to face a difficult path. Major foreign media outlets reported that TikTok is facing fact-checking issues ahead of the U.S. presidential election in November. TikTok, which has 100 million users in the U.S. alone, has become a major channel for political content, with total views of politically related videos such as Trump2020 and Biden2020 exceeding 12 billion.