TikTok proposes new deal with Oracle and Walmart; Trump gives his blessings
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Considering the new deal, the US Commerce Department has extended the deadline of the US ban of the popular short-video sharing app
The TikTok debacle seems to be coming to an end as the Chinese company has proposed for Oracle to be its US technology provider and Walmart as a commercial partner.
This decision has been taken after weeks of closed-door meetings, proposals and legal wars after the US President Donald Trump ordered a ban on the Chinese app TikTok citing national security concerns.
"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," a spokeswoman for TikTok said.
The deal has been proposed to the Trump administration but has not received an official yes yet. However, Trump had earlier, while talking to reporters, hailed this deal as "fantastic".
"I have given the deal my blessing," Trump said. "I approve the deal in concept."
As per the new deal, ByteDance will be setting up a new portion called TikTok Global in which the US shareholders are expected to control 53 per cent of the shares, and the Chinese investors will hold 36 per cent. While it is not yet finalised which company will be the majority share holder, Oracle is rumoured to hold 12.5 per cent of the TikTok Global shares.
Trump has claimed that the new company will be based in Texas and hire nearly 25,000 people. He has also reportedly claimed that the new company will be contributing nearly $5 billion to a fund dedicated to education for Americans.
"Well, we have a deal worked out I think with Wal-Mart is going to buy it, along with Oracle, Larry Ellison. It's going to be an incredible combination and I said, you know, do me a favour, could you put up 5 billion dollars into a fund for education so we can educate people as to real history of our country? The real history. Not the fake history. Because we're getting very close to that deal and all of the technology will be maintained here. They're going to move probably to the great state of Texas. Sorry, we've got you (North Carolina) a lot of business, but we couldn't...but they're going to move into the United States, which is what's important, move it to the United States. Unbelievable company. They're going to have 25,000 jobs if it all goes. I gave them the preliminary approval," he told local reporters.
The unofficial agreement has come after weeks of declining all other deal that the Chinese parent company ByteDance proposed.
The US Treasure has said, "Oracle will be responsible for key technology and security responsibilities to protect all U.S. user data. Approval of the transaction is subject to a closing with Oracle and Walmart and necessary documentation and conditions to be approved by" the Committee on Foreign Investment in the United States.
Considering the new deal, the US Commerce Department has extended the deadline of the US ban of the popular short-video sharing app.
However, the deal still has to go through the official nods by China and the US.