Chinese tech Bytedance announced that TikTok Global, the new company that will create its agreement with Oracle and Walmart to continue operating in the US, will launch a public offering of shares to improve its “business structure and transparency.”
It’s a statement, Bytedance He noted that TikTok Global will hold a round ahead of the Initial Public Offering (IPO), which will leave the Chinese company with an 80 percent stake in the new venture.
The board of directors of TikTok Global will include, among others, the founder of Bytedance, Zhang Yiming and the president of Walmart, Doug McMillon, in addition to other executives of the Chinese company. Oracle will have security access to source code from TikTok, although the agreement does not include transfer of algorithms or other technologies, according to the note.
The new commitments
Bytedance also explained that the 5,000 million dollars of contribution to the US coffers for an education fund cited by US President Donald Trump, are not related to the agreement reached with Oracle y Walmart.
That amount is based on estimates of the taxes that the company will have to pay over the next few years, the statement said.
Walmart and Oracle explained in a joint statement Sunday that the preliminary agreement With Bytedance, he will create a new company called TikTok Global, in which the two American companies will have a 20 percent stake.
TikTok Global will be responsible for providing TikTok services to the users in the US and “to the majority of users in the rest of the world,” at the same time that Oracle will become TikTok’s cloud provider, both companies announced.
The agreement also stipulates that TikTok Global “will be majority owned by US investors, including Oracle and Walmart,” which will be a American company independent, based in the North American country and with four Americans among the five members of the Board of Directors.
The US government announced on Saturday that it was delaying the application of measures against TikTok, which took effect on September 20, after Donald Trump give his “blessing” to the preliminary agreement so that it can operate in the country.
Trump announced hours earlier that he had given “his blessing” to an agreement with TikTok by which the red social It would partner with US companies Oracle and Walmart, although it noted that negotiations were still continuing. “I have given my blessing to the agreement, if they achieve it it would be great and, if not, it would also be good, but it is a great agreement for the United States,” said the president, who shortly after added that he approved the agreement “in concept.”