The United States President Donald Trump said he had given his “blessing” to a partnership between TikTok and US firms Oracle and Walmart.
Speaking with reporters at the White House on Saturday, approved the deal between TikTok’s parent company, ByteDance, and Oracle (ORCL), after threatening to ban the Chinese-owned app which he claims poses a national security threat because of its Chinese ties.
The new deal will give TikTok parent company ByteDance the majority owner under the agreement Trump said he approved, according to a person familiar with the matter.
According to department of Commerce,Trump agreed it would delay an order to remove TikTok from Apple and Google’s US app stores to September 27, giving the companies more time to finalise the details of the deal.
White house said the deal will also include a $5 billion fund for US education, and that TikTok would be incorporated in Texas as a new company.
“They’re going to be setting up a very large fund,” Trump said. “That’s their contribution that I’ve been asking for.”
TikTok confirmed in a statement that Oracle and Walmart will together hold up to a 20% share.
Walmart confirmed the deal in a statement and revealed that Wal-Mart CEO Doug McMillon would serve on its five-member board.
“We are excited about our potential investment in and commercial agreements with TikTok Global,” Wal-Mart said in a statement, adding it will also “enter into commercial agreements to provide our ecommerce, fulfillment, payments and other omnichannel services to TikTok Global.”
“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,”
TikTok said. “We are currently working with Wal-Mart 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.”
Oracle CEO Safra Catz said in a statement: “As a part of this agreement, TikTok will run on the Oracle Cloud and Oracle will become a minority investor in TikTok Global,” said Oracle CEO Safra Catz. “Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud.
We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users, and users throughout the world. This greatly improved security and guaranteed privacy will enable the continued rapid growth of the TikTok user community to benefit all stakeholders.”