President Donald Trump approved a deal for Oracle and Walmart to acquire stakes in the US operations of popular video app TikTok, postponing a potential ban that was scheduled to go into effect on Sunday.
Oracle will own a 12.5% in TikTok’s global business, which is headquartered in the US, and will provide secure cloud services that satisfy national security concerns about the Chinese-owned app. Retail giant Walmart will also take a stake. . .
“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,” TikTok said in a statement. “We will also maintain and expand TikTok Global’s headquarters in the US, while bringing 25,000 jobs across the country.” . . .
The deal, which still requires the approval of the Chinese government, came just hours before a ban on new downloads of TIkTok was set to take place. Commerce Secretary Wilbur Ross said Saturday that the ban would be pushed out to Sept. 27 at 11:59 p.m. as the deal is finalized.
The agreement follows a tumultuous period for TikTok, which Trump has called a national security threat because it’s owned by ByteDance, a Chinese tech company. The administration alleges that the Chinese government could use data gathered by the TikTok app to “track the locations of Federal employees and contractors, build dossiers of personal information for blackmail, and conduct corporate espionage.” TikTok has repeatedly pushed back, noting that it wouldn’t turn over data to the Chinese government even if it were asked to. (Read more from “Trump Approves TikTok App Deal” HERE)