proposal for Oracle (ORCL) to team up with the Chinese company ByteDance by Friday.
According to reports, the emerging deal would have Oracle take ownership of roughly 20% of the company. Walmart (WMT) is also expected to be part of the deal in some form.” data-reactid=”17″>According to reports, the emerging deal would have Oracle take ownership of roughly 20% of the company. Walmart (WMT) is also expected to be part of the deal in some form.
A Walmart spokesperson declined to comment to Yahoo Finance on any deal with Oracle and TikTok.
The key question – which could determine the level of opposition in the weeks ahead in DC if the Trump administration wants to move forward – is how the data generated by U.S. TikTok users would be handled and whether ByteDance would retain control over the information.
If the president decides to allow the deal – far from a sure thing – he could face a chorus of opposition from across Washington, including some of his closest political allies on other issues.
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President Trump arrives for a news conference on September 16. (Alex Wong/Getty Images)
“I think [Oracle is] going to pull it off,” said Pat Walravens of JMP Securities on Yahoo Finance’s “On the Move,” noting that the federal government is currently Oracle’s largest customer with all four branches of the military using Oracle products.
leading a range of Republican senators, including Senators Thom Tillis of North Carolina, Roger Wicker of Mississippi, Rick Scott of Florida, Dan Sullivan of Alaska, and John Cornyn of Texas – to raise “significant concerns” about any deal.” data-reactid=”48″>Sen. Marco Rubio (R-FL) is leading a range of Republican senators, including Senators Thom Tillis of North Carolina, Roger Wicker of Mississippi, Rick Scott of Florida, Dan Sullivan of Alaska, and John Cornyn of Texas – to raise “significant concerns” about any deal.
Rubio wrote in a letter that any deal “must ensure that TikTok’s U.S. operations, data, and algorithms are entirely outside the control of ByteDance or any Chinese-state directed actors.” What’s unclear is if the reported parameters of the deal – Oracle owning roughly 20% of the company – would be enough to satisfy their objections.
Early Thursday, Rubio tweeted that he had “informative” discussions with the Treasury Department and Oracle.
Other Republican senators have expressed even more rigid opposition.
a separate letter, said he wanted to remove the Chinese Communist Party “root and branch,” adding that the idea of any sort of partnership between Oracle and ByteDance “raises serious national security concerns.” Sen. Josh Hawley (R-MO) has also sent a letter saying the deal should be rejected.” data-reactid=”54″>Sen. Ted Cruz (R-TX), in a separate letter, said he wanted to remove the Chinese Communist Party “root and branch,” adding that the idea of any sort of partnership between Oracle and ByteDance “raises serious national security concerns.” Sen. Josh Hawley (R-MO) has also sent a letter saying the deal should be rejected.
During a recent Fox interview, she expressed concern that ByteDance would still have “visibility” into U.S. data and said she was opposed to the Chinese company having “any type of presence” in the U.S. going forward.” data-reactid=”55″>Sen. Marsha Blackburn (R-TN) is yet another voice against. During a recent Fox interview, she expressed concern that ByteDance would still have “visibility” into U.S. data and said she was opposed to the Chinese company having “any type of presence” in the U.S. going forward.
Now it’s unclear what this coalition of Republicans could do if Trump and Treasury Secretary Steven Mnuchin decide to go forward with the deal and this Senate opposition holds. Congress has no formal role in the CFIUS process but vocal opposition from his own party and even Senate hearings could be a major impediment to the deal being finalized in the run-up to November’s election.
said in a statement that “it’s hard to imagine this is anything but a payoff from China to one of Donald Trump’s major campaign fundraisers,” adding:"[m]aking Oracle a middleman won’t protect Americans against Chinese government influence.”” data-reactid=”58″>Prominent Democratic senators have also raised questions about a deal. Sen. Ron Wyden (D-OR) recently said in a statement that “it’s hard to imagine this is anything but a payoff from China to one of Donald Trump’s major campaign fundraisers,” adding:”[m]aking Oracle a middleman won’t protect Americans against Chinese government influence.”
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Sen. Ron Wyden (D-Or.) is the Democratic ranking member on the Senate’s Finance Committee. (Caroline Brehman/CQ-Roll Call, Inc via Getty Images)
said in a speech Wednesday that the Trump administration’s actions on TikTok have been “haphazard” and the way it has been conducted “will only invite retaliation against American companies.”” data-reactid=”83″>Sen. Mark Warner (D-VA) said in a speech Wednesday that the Trump administration’s actions on TikTok have been “haphazard” and the way it has been conducted “will only invite retaliation against American companies.”
would also approach TikTok negotiations with a preference towards forcing the company fully into American hands.
On Thursday, White House Chief of Staff Mark Meadows expressed the most skepticism from the White House so far about any deal. He said if TikTok remains predominantly Chinese-run, it would not meet Trump’s objectives.
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US President Donald Trump speaks with White House Chief of Staff Mark Meadows on September 12. (ALEX EDELMAN/AFP via Getty Images)
During his press conference Wednesday night, Trump said a decision hasn’t been made. “It has to be 100% as far as national security is concerned,” he said. “I have to see the deal” before signing off on anything.
The president also appeared to back away from his previous demand that the government receive a cut of any deal. “Amazingly, I find that you’re not allowed to do that,” Trump said.
Read more:
Why Biden may not differ from Trump when it comes to TikTok
TikTok deal will help Oracle ‘catch up’: analyst
Microsoft lost its best chance to be the ‘cool‘ tech company
TikTok deal doesn’t make sense for Oracle beyond politics, analysts say
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