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As US TikTok ban nears, here's what we know about a deal

By Bloomberg News, Bloomberg News on

Published in Business News

With just days to go until President Donald Trump's ban on TikTok in the U.S. comes into effect, the race is on for owner ByteDance to win approval for its plan to avoid a shutdown.

Technology giant Oracle Corp. has emerged as the Beijing-based company's chosen partner for a deal, beating out Microsoft Corp. There's still much to be decided before the Sept. 20 deadline. Here's a rundown what we know so far, what's still up in the air and what could happen next.

What We Know

_Who's in and who's out

Oracle confirmed in a brief statement Monday that it's part of the proposal ByteDance has submitted to the U.S. Treasury Department to resolve the row over TikTok. The statement was light on details, but referred to Oracle as the company's "trusted technology provider." Microsoft, the previous presumed frontrunner, said its bid had been rejected.

_What the deal looks like

 

Instead of an outright sale, the transaction is being seen as a corporate restructuring. People familiar with the proposal have said Oracle would make an investment in TikTok, alongside existing ByteDance shareholders including General Atlantic, Sequoia Capital and Coatue Capital.

U.S. Treasury Secretary Steven Mnuchin has referred to the new entity that would come out of the Oracle deal as "TikTok Global." He said the business would have its headquarters in the U.S. and create 20,000 jobs.

_What Trump thinks of it, for now

The president said Tuesday that his staff are "very close to a deal." He added that Oracle founder Larry Ellison has been "really a terrific guy for a long time," a show of potential support for the deal.

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