The deal was tentatively agreed in September.
“The deal was basically designed to meet the demands of the Trump administration,” a source familiar with the matter told the South China Morning Post. “But Trump is gone, and with him, the meaning of the deal is gone.”
The source added that Larry Ellison, one of the founders of Oracle, was a Trump supporter, and ByteDance, the owner of TikTok, believed it could build a profitable relationship with him if the former president won the 2020 election.
According to The Wall Street Journal on February 10, the plan to sell the American business TikTok in the United States in the Biden government was postponed “indefinitely”, now the new president is getting acquainted with Trump’s measures to regulate Chinese technology companies.
The source said that ByteDance is now looking for a new structure to continue working in the US. On February 11, SCMP sources said that TikTok continues to negotiate with the government of the country, despite the change of administration. ByteDance did not respond to the publication’s requests for comment.
In September, the Trump administration decided to block TikTok for national security reasons — the authorities accused the company of passing the data of American users to the Chinese authorities.
On September 14, ByteDance agreed to a deal with Oracle and Walmart. Oracle planned to acquire a 12.5% stake in the new TikTok Global company and gain access to TikTok source code and updates. Walmart had previously planned to buy a 7.5 percent.