A day after it was confirmed that Oracle and Walmart are willing to buy 12.5% stake in US operations of TikTok, India said its willing to reconsider if the management of the banned Chinese app wishes to re-engage with the government.
The deal which US President Donald Trump said was ‘approved’ by him will see the formation of a new corporate entity in the US –TikTok Global in which Oracle owns 12.5% and retail giant Walmart owns 7.5% while the rest is owned by TikTok’s Chinese parent ByteDance. The new entity will still largely be American as US investors have a 40% stake in ByteDance itself.
In India, the authorities are want to ensure that data stays within India’s jurisdiction and are willing to reconsider if the short-video app’s management comes up with a plan. The government authorities will also observe how TikTok India’s corporate structure changes.