President Trump previously said the US Treasury would get a cut of any TikTok deal.
  • Sources told the Financial Times TikTok's proposed partnership with Oracle won't include a cut for the US Treasury.
  • President Trump said last month a "large percentage" of any TikTok deal would have to go to the US Treasury — although he wasn't clear which party in the deal he thought should pay that sum.
  • TikTok appears not to be selling its US operations outright to Oracle, but has instead proposed a partnership with Oracle as its "trusted technology partner."
  • Visit Business Insider's homepage for more stories.

TikTok's proposed partnership with US tech giant Oracle won't include a cut for the US Treasury contrary to comments by President Trump last month, sources told the Financial Times.

Two sources familiar with TikTok and Oracle's proposed deal, which was officially announced on Monday and has been submitted to the governmental  Committee on Foreign Investment in the US (CFIUS) for approval, told the FT it doesn't include any cut going to the US Treasury.

An anonymous senior US official said a Treasury cut wasn't even a topic for discussion, but the deal would have economic benefits. Sources familiar with the discussions told Reuters that TikTok has proposed creating 25,000 US jobs as part of the deal. Treasury Secretary Steven Mnuchin told CNBC on Monday the deal involved a commitment to create 20,000 new jobs in the US.

Days before Trump signed the first of two executive orders on August 6 effectively forcing TikTok to divest its US operations to an American company, the president said the Treasury would get a "large percentage" of any sale price. Speaking to reporters on August 3, the president was not clear where he thought that money should come from.

"Whether it's Microsoft [the frontrunner for buying TikTok at the time] or somebody else, or if it's the Chinese — what the price is, the United States could, should get a very large percentage of that price, because we're making it possible," he said. 

TikTok appears not to be selling its US operations to Oracle outright, instead the companies have drawn up a partnership with Oracle as TikTok's "trusted technology partner."

In a statement sent to Business Insider a TikTok spokesman said it believes the proposal should "resolve the Administration's security concerns" about the app.

The Trump administration maintains because TikTok's parent company ByteDance is Chinese the app poses a national security risk, and could be used to spy on Americans. TikTok denies this, and filed a lawsuit against the US government saying it was not afforded due process.

Read the original article on Business Insider

Receive a daily update on your cellphone with all our latest news: click here.

Get the best of our site emailed to you daily: click here.

Also from Business Insider South Africa: