The latest update on the controversial TikTok ban is that the Trump administration has decided to approve the Tiltok-Oracle deal. It looks like the video content app is safe for the moment.
On Saturday, President Trump told media sources that he will allow the social media giant TikTok to continue operating in America after the company was allowed to partner up. In principle, with two American companies, Walmart and Oracle.
Minutes before flying to North Carolina, President Trump stated that he approves of the new TikTok-Oracle deal. However, he also mentioned that he will be okay even if the companies fail to seal the deal.
It was also announced that the potential TikTok ban would be delayed until the coming Sunday by the US Department of Commerce. Soon after, an Oracle spokesperson also confirmed that the company will be TikTok’s cloud provider. In addition to that, they will also have a small 12.5 percent stake in the company.
TikTok Representatives confirmed Oracle’s announcement as well. They also mentioned that they are working on securing a commercial partnership with Walmart.
Walmart In On The TikTok – Oracle Deal
Representatives from Walmart told media sources that they are planning on purchasing a 7.5 percent stake in TikTok. Reports suggest that Doug McMillon, Walmart CEO, will take up the role of one out of five TikTok board members.
Representatives from Walmart said that the newly created company will be offered for public purchase in the coming year so that more Americans own stakes in TikTok.
TikTok is currently owned by ByteDance, a Chinese company. They will still hold 80 percent of TikTok’s stake. However, US firms own 40 percent of ByteDance, technically, TikTok’s major shares will be owned by Americans.
As per the Trump administration, TikTok will be opening a base h. Texas, which will bring approximately 25,000 jobs to America. Furthermore, it has been reported that a contribution of $5 billion will be made by TikTok to an American education fund.
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The new deal has given a great opportunity to Oracle to step up and help the US-China economic relations.
Up until Monday, it seemed like the TikTok ban was inevitable as ByteDance and Oracle could not decide on the details of the new deal. However, with the new announcement from the Trump administration, it looks like the crisis has been averted. The Trump administration and the Chinese government have been involved in a lengthy duel of trade wars.
Larry Ellison, Oracle’s chairman has been a long time Trump supporter. He even threw a fundraiser for Trump’s 2020 presidential campaign.
No timeline has been provided. However, Oracle announced that TikTok’s data will be moved to Oracle’s safe cloud infrastructure.