US government is not happy with the Oracle-TikTok alliance
President Trump sees still potential for conflict in the new deal setup.
The deal between Oracle Corporation (NYSE: ORCL) and TikTok is headed for inclement weather as the White House expresses concern about the deal. According to a communiqué from President Donald Trump, if the Oracle becomes a partner, the Chinese who control TikTok will not be accepted by White House standards. White House chief of staff Mark Meadows said the deal would simply be repackaged with Chinese control. It won't go well with the original goals that the president set. The government is currently reviewing the terms of the agreement. On Wednesday, Trump said Beijing-based ByteDance would have a stake in TikTok's U.S. operations. Speaking to reporters, Trump said he would not like the deal. Some Senate Republicans and people within the White House administration have also raised concerns that ByteDance may retain a controlling stake in US operations. According to the Wall Street Journal, Trump administration officials are working on a mechanism to give U.S. investors a controlling stake in a company that will acquire TikTok's U.S. operations. ByteDance officials held a conference call on Wednesday night to approve the strengthening of data management and data security aspects in the proposal. Treasury Secretary Steven Mnuchin said the deal was very technical. It requires a counter-proposal on security-related issues, which turned out to be the main concerns in the negotiations with China's hawks. The counter-proposal also overshadowed control and property issues. The deal faces further complications as it requires approval from both the US and Chinese authorities. The US government delayed the ban on TikTok amid positive developments. Speaking to reporters, Trump said he supported the deal with ByteDance, the owner of TikTok, Walmart and Oracle. The US Department of Commerce announced that it would postpone the ban on TikTok for mobile applications - TikTok - until September 27, 2020. In the new agreement, Walmart will act as the business partner while Oracle is the technology partner.