TikTok Announces Deal With Oracle and Walmart, Trump Approves

Just hours before new app downloads would be banned in the United States, Vanessa Pappas, the interim head of TikTok, announced on Saturday that the company has reached a proposal with Oracle and Walmart that will keep the video sharing platform alive in the country. The deal has also been approved by President Donald Trump, reports Bloomberg.

tiktok logo
The deal will effectively establish a new company, TikTok Global, in which Oracle and Walmart can together take up to a 20 percent stake in. TikTok Global will be headquartered in the United States and will bring 25,000 jobs to the country. Pappas said that Oracle will be responsible for storing user data, emphasizing the company's commitment to protect its users' privacy.

We're pleased that today we've confirmed a proposal that resolves the Administration's security concerns and settles questions around TikTok's future in the US. Our plan is extensive and consistent with previous CFIUS resolutions, including working with Oracle, who will be our trusted cloud and technology provider responsible for fully securing our users' data. We are committed to protecting our users globally and providing the highest levels of security. Both Oracle and Walmart 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 the US as TikTok Global's headquarters while bringing 25,000 jobs across the country.

The deal was announced just hours before the U.S. Commerce Department was set to ban new downloads of TikTok, and Bloomberg says the ban on TikTok has been delayed by a week after Trump gave his initial approval of the proposal. The initial ban was set to include both TikTok and WeChat, but it is unclear at the current time if the latter app, which is owned by China's Tencent Holdings, will still be banned from Apple and Google's respective U.S. app stores on Sunday.

President Trump in August signed an executive order giving ByteDance, TikTok's parent company, 90 days to sell its TikTok business in the United States due to evidence of possible national security threats from the China-based company. Though TikTok has opted for a partnership instead of a divestment of U.S. operations, all user data will be stored by U.S.-based Oracle, and the company will be able to review TikTok's current source code and that of any subsequent updates.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tags: Oracle, TikTok

Top Rated Comments

hagar Avatar
13 months ago
US imperialism at its best. I’m no fan of China, but this is ridiculous. I hope other countries start blocking US apps that “spy” on their citizens. But then it would be called stifling innovation, wouldn’t it.
Score: 53 Votes (Like | Disagree)
mdatwood Avatar
13 months ago
I'd love to know how TikTok is going to generate 25k jobs in the US. Oracle already has 135k employees (~30% of which are not in the US), that can manage the technical side. Walmart also makes no sense.

Basically a fake deal to let the POTUS say he got something done. Yawn.
Score: 53 Votes (Like | Disagree)
now i see it Avatar
13 months ago
Whew- I was afraid I wouldn't be able to make my little dance videos for utter strangers
Score: 40 Votes (Like | Disagree)
macdos Avatar
13 months ago
This is about a president whose legacy is an unfinished wall against Mexico, two hundred thousand dead citizens, and hurt feelings after being deceived by the Tiktok fan base at a rally in Tulsa. He's doing all he can to throw dust in the air to confuse the general public about his dirty deeds, in a desperate hope to retain the power come November.
Score: 24 Votes (Like | Disagree)
hagjohn Avatar
13 months ago
Oracle and Walmart will take up to 20% stake ... so who owns the rest, ByteDance? I'm not sure how this stops "spying by China" from happening.
Score: 23 Votes (Like | Disagree)
Nordichund Avatar
13 months ago
I wonder if this would have happened if TickTock had been Russian?
Score: 19 Votes (Like | Disagree)

Top Stories

tiktok logo

Second Federal Judge Rules Against Trump Order to Ban TikTok

Tuesday December 8, 2020 2:15 am PST by
A federal judge on Monday blocked the Trump administration's attempt to ban new downloads of TikTok in the United States, the latest defeat in the White House's efforts to outlaw the app in the country (via TechCrunch). President Trump in August signed an executive order that would officially ban any U.S. transactions with TikTok if its Chinese parent ByteDance did not reach a deal to divest ...
tiktok logo

Trump Signs Executive Order Giving ByteDance 90 Days to Sell US TikTok Business

Saturday August 15, 2020 5:09 am PDT by
President Donald Trump has signed an executive order giving ByteDance 90 days to sell its TikTok business in the United States, citing evidence of possible national security threats from the China-based company. In the order, the Trump Administration said there's "credible evidence" to suggest that ByteDance "might take action that threatens to impair the national security of the United...
tiktok logo

TikTok to Sue Trump Administration Over US Ban as Soon As Tuesday

Monday August 10, 2020 3:30 am PDT by
TikTok plans to sue the Trump administration as soon as this week, challenging the president's recent executive order to ban the short-form video sharing platform from the United States. According to a source who spoke to NPR, TikTok will file a federal lawsuit in the U.S. District Court for Southern California, where its American operations are based, as early as Tuesday. NPR has learned...
vybe together

Apple Pulls App That Promoted Secret Parties During Ongoing Pandemic

Wednesday December 30, 2020 2:08 am PST by
Apple has pulled an iOS app from the App Store that encouraged users to organize secret underground parties despite social distancing measures and U.S. pandemic restrictions, reports The Verge. Called "Vybe Together," the app billed itself as a place to organize and attend secret parties, with its now-defunct website using the tagline "Get your rebel on. Get your party on." App users...
tiktok logo

Oracle Reportedly Agrees Deal for TikTok's US Operations, But Chinese Media Cast Doubt on Any Sale

Monday September 14, 2020 3:31 am PDT by
Amid reports Monday morning that Oracle has won the battle with Microsoft to acquire TikTok's U.S. operations, China's state-run English TV channel is claiming that no sale with any U.S. buyer will go ahead (via Reuters). ByteDance will not sell TikTok's U.S. operations to Oracle Corp ORCL.N or Microsoft Corp MSFT.O and will not give the source code for the video platform to any U.S. buyers,...
wechat transparent

WeChat Users Group Sues Trump Administration Over 'Unconstitutional' Ban

Monday August 24, 2020 3:41 am PDT by
A group of WeChat users has filed a lawsuit against the Trump administration in an effort to block an executive order that would ban the app in the United States, according to The Wall Street Journal. Earlier this month, President Trump signed two executive orders that would officially ban any U.S. transactions with ByteDance and Tencent, the Chinese companies that own TikTok and WeChat,...
tiktok logo

Trump Administration Considers Global TikTok App Store Ban

Wednesday August 12, 2020 4:14 am PDT by
A new document outlining the potential scope of President Trump's TikTok ban suggests Apple could be forced to remove the short-form video sharing platform from its App Store in China. Trump last week signed an executive order that would officially ban any U.S. transactions with TikTok if its Chinese parent ByteDance does not reach a deal to divest it to a U.S. company in 45 days....
tiktok logo

Trump Signs Executive Orders to Ban US Transactions With Chinese Companies ByteDance and Tencent

Friday August 7, 2020 3:06 am PDT by
President Donald Trump has signed two executive orders that would officially ban any U.S. transactions with the Chinese companies that own TikTok and WeChat, in an escalation of the ongoing technological cold war between the two countries. The executive orders would prohibit "any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States,"...
Apple TV Ray Light teal

Apple Picks Up 'Extrapolations' Series on Climate Change for Apple TV+

Wednesday December 9, 2020 2:16 pm PST by
"Extrapolations," an upcoming anthology series about climate change, is coming to Apple TV+, reports Variety. The series was created by Scott Z. Burns, who is writing, directing, and executive producing. The show will tell "intimate, unanticipated stories" about how changes to the planet will affect "love, faith, work, and family on a personal and human scale." The series will feature 10...
tiktok logo

ByteDance Granted Seven-Day Extension of TikTok Sale

Thursday November 26, 2020 4:02 am PST by
TikTok owner ByteDance has been granted a seven-day extension on an order from the Trump Administration to sell the short-form video sharing platform (via Reuters). The administration had previously granted ByteDance a 15-day extension of the order issued in August, which was set to expire Friday. President Trump on August 14 directed ByteDance to divest the app within 90 days. According...