US has until Friday afternoon to defend or delay TikTok ban

President Trump’s ban on the video-sharing app TikTok was only temporarily postponed by the deal reached between its Chinese owner ByteDance and Oracle (NYSE: ORCL) and Walmart (NYSE: WMT). Because Trump only accepted the deal in the concept, the ban takes effect this Sunday. So TikTok filed for an injunction on Wednesday, and a District of Columbia federal court judge on Thursday gave the United States until 2:30 p.m. this afternoon to defend the ban or delay it.

Image source: Getty Images.

The deal would see TikTok transform into a new publicly traded company called TikTok Global. Oracle would hold 12.5% ​​of the company, Walmart 7.5%, and ByteDance would retain an 80% stake.

Still, because Trump assumed that the U.S. entities would own the business, he warned, ByteDance “won’t have anything to do with it. And if they do, we just won’t conclude it. ‘agreement.

Some of the confusion surrounds who actually controls the tech company. Despite the participation of ByteDance, four of the five seats on the board of directors of the new company will be held by Americans and 53% of TikTok Global will be held by American investors, since they also own 41% of ByteDance.

There is also uncertainty as to whether China will sign the deal. Although ByteDance has applied for a technology export license under new rules adopted by Beijing to thwart the transfer of the algorithm from TikTok to US companies, the publisher of Global Times, a Chinese government-controlled newspaper tweeted that Beijing would not approve the deal “because the deal would endanger China’s national security, interests and dignity.”

The U.S. District Court judge said the Commerce Department must file its response to TikTok’s injunction request by this afternoon or else it must delay the ban. A federal court also blocked the ministry’s ban on Tencentof (OTC: TCEHY) WeChat application Last week.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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