The TikTok-Oracle deal is still active and faces a dilemma over the nearing November 12 CFIUS deadline set by the administration of US President Donald Trump, which cracked down on social media. ByteDance is now asking to extend the deadline to divest its assets to the US government and concerned companies, Oracle and Walmart.
BERLIN, GERMANY - SEPTEMBER 21: A young man holding a smartphone casts a shadow as he walks past an advertisement for social media company TikTok on September 21, 2020 in Berlin, Germany. U.S. President Donald Trump has given preliminary approval for Oracle, Walmart and other investors to take over TikTok and create a new U.S.-based company called TikTok Global.
The Chinese short video social media application, TikTok, is still pursuing the deal with Oracle and Walmart to be its US, Canada, and New Zealand operation head that is in line with the government's previous requirements. Donald Trump's strict measures against TikTok initially threatened the company's operation in the country.
TikTok-Oracle Update during the Administration Change: Still Pursuing
According to CNBC, the United States government's crackdown on the Chinese social media under the CFIUS order is no longer valid. It does not require the company to sell its assets to the country. However, TikTok now fixes itself to the deal it has made with Oracle and Walmart despite this development.
Currently, the US Justice Department and government are radio silent about TikTok's sale and asset divestment with a November 12 deadline, which is due in a couple of hours. The election's wake affects ByteDance's dispute with the government's initial harsh conditions.
With the administration change, TikTok may be seeing a prosperous future in the United States without the hostility and threat classification that was initially painted over the Chinese social media company. No news or comments regarding Trump's administration on the on-going acquisition of an American company over TikTok.
Read Also: Apple M1 Chip Vs Intel: Next-Gen Macs Will Be Way Better But With One BIG Disadvantage!
TikTok-Oracle Deal Deadline: No Known Consequences or Sanctions When Assets are not Divested
The November 2020 US Presidential Election recently crowns Democratic candidate Joe Biden, the country's next leader. The Biden Administration remains silent over what to do with TikTok regarding the deal and sale currently on-going between ByteDance, Oracle, and Walmart.
The CFIUS Order that started on August 14 initially met a September 20 deadline, to which TikTok met by securing a deal with Oracle. Flash forward to two months later, November 2020's schedule asks TikTok to divest its assets to the US government regarding its operation rights and stakes in the country.
The rights that would be turned over to the US government is only a minority stake of 20 percent, with Oracle and Walmart taking over the assets as part of the sale. The Committee on Foreign Investments of the United States (CFIUS) holds no known consequences or sanctions for ByteDance if the November 12 deadline is not met.
TikTok: Loose Operations in Country During Post-Election Period
SAN ANSELMO, CALIFORNIA - NOVEMBER 01: In this photo illustration, the Tik Tok app is displayed on an Apple iPhone on November 01, 2019 in San Anselmo, California. The Committee on Foreign Investment in the United States (CFIUS) has started a national security investigation of social media app TikTok after Beijing ByteDance Technology Co acquired U.S. social media app Musical.ly for $1 billion.
The surprising turn of events favors TikTok and ByteDance over the US-TikTok sale that began its iron hand in late July and early August. TikTok's status changed from being a social media platform to a national security threat as ex-President Trump claims that it secretly gathers US citizens' data and information for China's interests.
This statement was repeatedly denied by ByteDance and TikTok, saying the company did no such thing. The US-TikTok sale that ensued a bidding war against Microsoft, Oracle, Walmart, and even Twitter, which attempted to gain control over the app.
Related Article: EU Commission Alleges Amazon Breaking Antitrust Rules and Announces Second Formal Investigation
This article is owned by Tech Times
Written by Isaiah Alonzo
