Trump May Tank TikTok Deal With Oracle Because Government Doesn’t Get a Cut
It’s looking more and more like a TikTok deal won’t be reached before President Donald Trump’s executive order against the app’s parent company, ByteDance, takes effect next week.
For a moment, it looked like at least a compromise on TikTok might be had. But Trump is upset that the U.S. government wouldn’t get a cut for brokering a deal between TikTok parent company ByteDance and potential U.S. buyer Oracle. (And by brokering, we mean banning a foreign product unless the owner sells it to a U.S. company.) Trump also had concerns that it’s not an outright acquisition but a loosely defined “partner” situation between ByteDance and Oracle.
From the Associated Press:
President Donald Trump said he expects to get a report Thursday about Oracle’s bid for the Chinese-owned video-sharing app TikTok and admitted there is no legal path to letting the U.S. Treasury get a cut of the deal—a proposition experts had criticized as unprecedented and possibly illegal.
“I’m not prepared to sign off on anything. I have to see the deal,” Trump told White House reporters Wednesday evening about Oracle’s interest in TikTok.
The president seems to have lost enthusiasm for the deal, in part, after realizing there was no cut for the federal government. “Amazingly, I find that you’re not allowed to do that,” Trump said. “If they’re willing to make big payments to the government they’re not allowed because … there’s no legal path to doing that. … How foolish can we [the United States] be?”
Very foolish, it seems, and heading down a dangerous path.
“The Trump administration’s decision to force the sale of TikTok to a U.S. buyer is, to many, the latest sign the global internet is splintering into national and regional blocs,” suggests University of Washington professor
“This has been a concern for several years now, as authoritarian countries such as Russia, China and Iran erect walls around their cyberspace, and democracies like the U.S., India and the European Union cite national security when blocking specific foreign companies like ByteDance’s TikTok and Tencent’s WeChat.”
The administration did assure U.S.-based TikTok employees (in response to a recent lawsuit) that they won’t be in trouble for c
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