Oracle, Walmart, other US investors set to own majority stake in TikTok Global

REUTERS/Dado Ruvic

US investors, including Oracle Corp, are set to hold at least a 60% stake in TikTok, a person briefed on the matter told Reuters.

The US Treasury submitted a revised term sheet to ByteDance late Wednesday to address national security concerns that was agreed to by the Chinese parent of TikTok, the source said.

The new company, called TikTok Global, will have a majority of American directors and a US chief executive. Oracle has agreed to take a 20% stake in the company when it is created and Walmart Inc is also expected to take an equity stake and have a seat on TikTok Global’s board, the source said.

It is still not clear if US President Donald Trump will sign off on the detail.

Trump said Wednesday he did not like the idea of US investors holding a minority stake. “Conceptually, I can tell you that I don’t like that,” Trump said.

US investors currently have a 40% stake in ByteDance, including Sequoia Capital and General Atlantic. After Oracle and Walmart invested in TikTok Global, US investors would own a significant majority, the source said.

While TikTok is best known for dancing videos that go viral among teenagers, US officials are concerned user information could be passed to China’s Communist Party government. TikTok, which has as many as 100 million US users, has said it would never share such data with Chinese authorities.

It is not clear what Oracle will pay for its stake. Oracle and Treasury did not immediately comment.

White House Chief of Staff Mark Meadows said on Thursday that the administration is still looking at details of the deal and whether it meets national security thresholds. Meadows said if TikTok remains predominantly Chinese-run under the Oracle deal, that would not meet President Donald Trump’s objectives.

CNBC and Bloomberg News reported some details of the ByteDance Treasury agreement earlier.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.