TikTok says it will own U.S. subsidiary, disputes Trump's claim of $5 billion U.S. education fund

TikTok
(Image credit: Mario Tama/Getty Images)

President Trump gave approval Saturday for a deal in which China's ByteDance would partner with Oracle and Walmart to create a U.S. TikTok spinoff that would satisfy his security demands. ByteDance said Monday it wanted to clarify some "groundless rumors" about the deal, asserting that the Beijing company would control 80 percent of a wholly owned subsidiary, TikTok Global, after a public offering. Oracle would own a 12.5 percent stake and Walmart the other 7.5 percent.

U.S. backers of the deal argue that because U.S. investors own 41 percent of ByteDance, the 20 percent owned by Walmart and Oracle would give U.S. investors and companies a majority stake in the TikTok Global. Oracle and Walmart also said Americans would hold four of the five seats on the board of directors. ByteDance said Monday that one seat would go to Walmart CEO Doug McMillon but the other four would stay with current directors, including ByteDance founder Zhang Yiming.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.