By Kate Davidson and Georgia Wells 

WASHINGTON -- China's ByteDance Ltd. would retain a majority ownership stake in its TikTok app as part of a proposal to be reviewed by national-security regulators on Tuesday with an eye toward settling the high-profile deal by a deadline Sunday, according to a person familiar with the situation.

The proposal includes Oracle Corp.'s bid to become TikTok's U.S. technology partner as part of an effort to address the administration's national-security concerns surrounding the Chinese-owned video-sharing app

A senior administration official said the Committee on Foreign Investment in the U.S., which includes officials from the Treasury, Commerce and Homeland Security departments, will review the TikTok deal at its regular meeting on Tuesday afternoon.

The review is one of the final steps before officials present the proposed transaction to President Trump.

Mr. Trump told reporters at the White House that his administration would make a decision on the pending deal "pretty soon," adding that he has "high respect" for Larry Ellison, Oracle's chairman.

'I heard they're very close to a deal," Mr. Trump said Tuesday without elaborating.

In an Aug. 6 executive order, the White House effectively gave Beijing-based ByteDance a 45-day deadline to shed its U.S. operations or face a ban. The administration contends that the app poses a security threat because data on U.S. consumers could be shared with the Chinese government, a concern that TikTok has disputed.

The proposal presented to the committee involves TikTok's global business becoming a U.S.-based company that would still be a unit of ByteDance, according to the person familiar with the matter. Oracle would take a minority stake in that company, along with other possible U.S. investors including Walmart Inc., the person said.

ByteDance would retain a majority stake, the person said. The Financial Times earlier reported parts of the plan.

TikTok said Monday the proposal submitted to the Treasury Department should resolve the administration's security concerns.

On Monday, Treasury Secretary Steven Mnuchin confirmed that his office received a bid proposal from Oracle for TikTok's operations over the weekend and said that the Treasury-led Cfius panel would study it and make a recommendation to Mr. Trump.

"From our standpoint, we'll need to make sure that the [app's] code is, one, secure, Americans' data is secure, that the phones are secure and we'll be looking to have discussions with Oracle over the next few days with our technical teams." Mr. Mnuchin said on CNBC.

Mr. Mnuchin also said the Oracle deal includes a commitment to establish TikTok as a global company with headquarters in the U.S., which he said would mean 20,000 new jobs.

The Treasury secretary said he wouldn't go into all the details of the plan, but clarified that the deadline for the TikTok deal is Sunday.

Mr. Trump issued a separate executive order Aug. 6 that banned U.S. individuals and firms from transactions involving WeChat, the popular Chinese app owned by Tencent Holdings Ltd. that combines text messages, mobile payments, social media and other functions.

The proposed ban has rattled American companies doing business in China. They worry it could disrupt their marketing campaigns and other operations in the world's second-largest economy.

The precise outline of the WeChat ban isn't clear, however, with Mr. Trump directing the Commerce Department to present details by Sunday.

In an interview last week, Secretary of Commerce Wilbur Ross said his department would meet that deadline and would publish rules detailing the specific transactions that will be prohibited.

Kate O'Keeffe contributed to this article.

Write to Kate Davidson at kate.davidson@wsj.com and Georgia Wells at Georgia.Wells@wsj.com

 

(END) Dow Jones Newswires

September 15, 2020 19:14 ET (23:14 GMT)

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