Big updates this week in the ongoing saga to save TikTok in America. As we reported on Monday, Oracle has emerged as the favourite American bidder on TikTok. But a clearer picture of the deal in the works is emerging — here's the latest:
- TikTok's China-based owner, ByteDance, has proposed spinning off TikTok into a new corporation headquartered in the U.S.
- ByteDance will retain majority ownership over the new corp, while U.S-based Oracle will take a minority stake.
- Insiders say ByteDance will operate at "arm's-length" from TikTok
The big question now: will the Trump administration agree to the plan?
That remains to be seen. Treasury Secretary Steve Mnuchin made positive comments about it and some are suggesting approval is imminent, and there are other reasons to think the deal will go through:
- TikTok has promised to create 20,000 jobs in the U.S. if the deal is approved.
- Oracle was co-founded by Larry Ellison and is headed by Safra Catz, two of the few pro-Trump execs in Silicon Valley.
- China apparently supports the plan too.
But remember: Trump initially demanded a full sale of TikTok to an American company. And this deal looks a lot like Microsoft's initial proposal which Trump rejected.
In any case, we should know the fate of TikTok by this time next week.