Donald Trump approves Oracle and Walmart TikTok deal
US President Donald Trump has given his blessing for a deal between TikTok and a coalition of Oracle and Walmart, after threatening to ban the Chinese owned app.
The agreement also comes with a $5 billion fund going to controversial education programmes on 'the real history of our country’.
“I have given the deal my blessing,” Trump told reporters over the weekend. “If they get it done that’s great, if they don’t that’s fine too. The security will be 100%. Conceptually it’s a great deal for America.”
Also of interest: Walmart enters race to buy TikTok
Oracle will take a 12.5% share in the new company, TikTok Global, while Walmart will take 7.5%. Chinese firm ByteDance will retain roughly 80% of the venture. But because the latter is 40% owned by US investors, the new TikTok Global will technically have a majority American ownership.
Oracle will also enter into commercial agreements to provide its e-commerce, fulfilment, payments and other omnichannel services to TikTok Global. Any deal would still need to be signed off by Beijing.
“We are pleased that the proposal by TikTok, Oracle and Walmart will resolve the security concerns of the US administration and settle questions around our future in the US,” TikTok said in an online statement.
“We are excited about our potential investment in and commercial agreements with TikTok Global. Our CEO, Doug McMillon, will serve as one of five board members of the newly created company,” Walmart said in a statement.
“In addition, we will work toward an initial public offering of the company in the United States within the next year to bring even more ownership to American citizens. The final transaction will need to be approved by the relevant US government agencies.”
“We believe this deal will benefit the US in many ways, including bringing over 25,000 jobs over time as well as continuing to develop exciting, innovative products for people to enjoy around the world.,” it added.
