Trump said he’s given his blessing to a proposed deal that would see the popular video-sharing app TikTok partner with Oracle and Walmart to become a US company.
Trump administration delays TikTok curb following concept deal between Oracle and Walmart
In a press release, TikTok confirmed a new proposal involving Oracle and Walmart which aims to “resolve the security concerns of the US Administration.”
Under the proposal, Oracle will become TikTok’s “trusted technology provider,” and work is underway to form a commercial partnership with Walmart.
In separate statements, Walmart said it has tentatively agreed to purchase 7.5% of TikTok Global, while Oracle confirmed it will buy a 12.5% stake.
Following the announcements, the US Department of Commerce said the prohibition of TikTok transactions will now be delayed until 11:59 pm on September 27.
The interim head of TikTok, Vanessa Pappas, just shared this message with employees: “We are pleased that the President today has approved in concept a proposal we made that resolves the Administration’s security concerns and settles questions around TikTok’s future in the US.”
TikTok News and Update Communication team Tweeted
We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok’s future in the US.
As part of this proposal, Oracle will become our trusted technology provider, responsible for hosting all US user data and securing associated computer systems to ensure US national security requirements are fully satisfied.
We are currently working with Walmart on a commercial partnership as well. Both companies will take part in a TikTok Global pre-IPO financing round in which they can take up to a 20% cumulative stake in the company.
We will also maintain and expand TikTok Global’s headquarters in the US, while bringing 25,000 jobs across the country.
TikTok has won the hearts of hundreds of millions of people around the world, including 100 million Americans, because it’s a home for entertainment, connection, and expression.
We’re delighted that the individuals who’ve turned their creativity on TikTok into thriving careers, the small businesses using TikTok to reach customers during the pandemic, and the families who’ve found joy and connection through our platform will be able to use TikTok for many years to come.
Our team works tirelessly to provide a safe and inclusive platform and we’re thrilled that we will be able to continue serving our amazingly diverse and creative community.
About 100 million Americans use TikTok and US officials have expressed concern about the potential for China to access users’ data.
“I have given the deal my blessing,” the US president told reporters. “If they get it done that’s great, if they don’t that’s fine too.”
“The security will be 100%,” Trump added. “Conceptually it’s a great deal for America.”