Trump approves a deal for purchase of TikTok
Washington, 20th September: US President has said that he has approved the deal for the purchase of TikTok.
According to reports of CNN News, President Donald Trump said on Saturday that he has approved a deal between TikTok’s parent company, ByteDance, and Oracle (ORCL) temporarily averting a ban on TikTok in US app stores.
The Commerce Department has confirmed in a statement on Saturday evening that it would delay by one-week restrictions that were originally to take effect on Sunday.
ByteDance will continue to be a majority owner of TikTok under the agreementTrump said he approved, according to a person familiar with the matter.
Speaking to reporters, Trump said he approved the deal “in concept.”
“I have given the deal my blessing,” Trump said. “If they get it done, that’s great. If they don’t, that’s okay, too.”
The deal will also include Wal-Mart (WMT)), Trump said, adding that “the security will be 100 per cent. They’ll be using separate clouds and very, very powerful security.”
Trump’s announcement comes hours before restrictions from the Commerce Department were set to take effect that would remove TikTok from US app stores, including those operated by Apple and Google. The White House declined to comment.
ByteDance will continue to be a majority owner of TikTok under the agreement Trump said he approved, the person said.
TikTok confirmed in a statement that Oracle and Walmart will together hold up to a 20% share.
“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 partner 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.”
Trump also said that TikTok would be incorporated in Texas as a new company.
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