Beijing (PingWest)- President Donald Trump said on Tuesday he had heard Oracle Corporation is near to close TikTok deal as TikTok and Oracle will become business partners in the U.S.
“I heard they are very close to a deal, and we are going to make a decision pretty soon,” Trump said.
Under the agreement, two parties will create a separate corporate entity for TikTok. TikTok parent company ByteDance proposed that it would keep a majorty stake in the new entity and will set up headquarters for TikTok in the United States, the sources said.
ByteDance’s major investors - General Atlantic, Sequoia Capital and Coatue Management LLC - have also discussed taking minority stakes in TikTok, though their participation in the deal remains uncertain, Reuter reported citing a source closed to the matter said.
Oracle would become ByteDance’s technology partner responsible for the management of TikTok’s data and take a minority stake in TikTok, the sources added.
ByteDance will create 20,000 U.S jobs with TikTok under the agreement, according to statement made by Treasury Secretary Steven Mnuchin on Monday.
TikTok deal took multiple unexpected turns, some of the biggest companies have involved in the bid, including Microsoft, Walmart, Twitter and Google.
If Oracle finish the deal and become a business partner for TikTok, that means the deal falls short of Trump’s original demand for a full acquisition of TikTok’s U.S operation.
It is still remains unknown whether Trump will approve ByteDance’s proposal.
In August, Oracle begun involved in TikTok deal as an alternative to Microsoft, which is partnering with Walmart for the bid.
Trump signed an executive order on August 14 calling on ByteDance to sell TikTok’s US operation to a U.S company other TikTok will be banned in the United States.
China also got involved in the TikTok deal last month, revising its export control rules for the technology to regulate the transfer of technology, including TikTok’s foundation-AI-based recommendation algorithm.