Trump Approves TikTok-Oracle Deal
President Donald Trump said he had approved a TikTok-Oracle deal to take over the U.S. operations' video-sharing app.
Trump said the TikTok-Oracle deal will potentially involve Walmart and will be based in Texas, said a report from The Guardian.
He first expressed hesitance when he read the news that said Chinese tech firm ByteDance would get a majority stake at the company. But with the new TikTok-Oracle deal, it appears that the beloved app won't be banned in the U.S. after all.
Trump told reporters the news Saturday, USA Today said. In the report, he said the combined company was "conceptually" an excellent deal for the U.S.
The company will still go by the name TikTok, and can possibly employ around 25,000 people, he said.
Trump said he had given the deal his "blessing. "If they get it done, that's great; if they don't, that's OK too."
ByteDance is yet to comment on the proposed deal. They still need further approval from the Chinese government to move forward, said a BBC report.
Just recently, Trump said his administration would ban people from downloading TikTok from any app store starting Sunday.
But the U.S. Commerce Department said the plan had been delayed for a week until September 27. The delay was due to "recent positive developments."
Security Concerns Resolved
TikTok first received ban threats after allegedly sharing data with the Chinese government about its American users. The company repeatedly denied such accusations and assured that they were handling data securely.
However, they were given a deadline to make a sale to a U.S. company by September 15.
In a change of heart, Trump said on Saturday that the deal ensured data security. He said the data of the estimated 100 million U.S. users would be safe.
He told reporters: "The security will be 100%."
In an email, TikTok said it was pleasing to hear that the security concerns were resolved.
"We are pleased that TikTok, Oracle, and Walmart's proposal will resolve the security concerns of the U.S. Administration," the company said.
The TikTok-Oracle Deal
Reuters said in a report Thursday that the new company will be named TikTok Global.
It will have a majority of U.S. directors and a local chief executive. It will also have a security expert on the board.
Oracle will have a 20% stake at the new company. If Walmart is also successful in negotiating its stake, its chief executive, Dog McMillon, will also get a seat on the TikTok Global board.
Trump said the new TikTok company ensured that it would be "totally controlled by Oracle and Walmart."
The data from the app will be stored by Oracle. Oracle will also have the right to inspect the source code for TikTok.
Filing the IPO for TikTok Global will be on a U.S. stock exchange and could be ready in about a year. Sources supplied this information to reporters with the request of anonymity as the matter is confidential.
The company also reportedly agreed to set up a $5 billion donation to an educational fund in the state.
Trump said the company would set up "a very large fund." It was the contribution he was asking for, he added.
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