President Trump says he has approved’in concept’ for TikTok. The move comes less than a day before the de facto ban he threatened in August was set to go into effect.
‘I have given the deal my blessing,’ Trump said as he departed for a rally in North Carolina.’I’ve approved the deal in concept,’ he said.
The Commerce Department issued an order to block transactions with TikTok parent company and WeChat. The order is set to go into effect on November 12th for TikTok, effectively halting the app’s operations.
Tiktok global would be based in the US and take over processing and storage for all US-based TikTok users.
Trump said the new company would be based in Texas, would hire up to 25,000 people and would contribute $ 5 billion toward us.’that’s their contribution that I’ve been asking for,’ he said.
The ban on TikTok that was to go into effect tomorrow will be delayed a week, until September 27th at 11:59pm.
The Chinese government has to sign off on any transaction for it to move forward. Chinese government must sign off any transactions for the move.
Tiktok, Oracle, and Walmart will become TikTok’s’trusted technology provider’. As part of the deal, Oracle will be responsible for hosting all us user data and securing associated computer systems.
Both companies will take part in a TikTok global pre-IPO financing round. They can take up to a 20 % stake in the company.
Oracle CEO Safra Catz said in a press release that Oracle would become a minority investor in TikTok global. The deal would be TikTok’s’secure cloud technology provider’ under the deal.
Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle cloud. Catz:’we are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to American users’.
Tiktok will bring 25,000 jobs across the country as part of the deal. The company will also maintain and expand TikTok global’s headquarters in the US.
The White House did n’t immediately reply to requests for comment. The president did not immediately respond to request for comment Saturday.
Tiktok spokesperson: comment from TikTok spokesperson. Added comment from spokesperson. Tiktok spokesperson says comment was made.
Update September 7:24 PM ET: updated statement from Oracle CEO. Statement: statement from CEO was updated September 19. Oracle CEO: statement is a statement from the CEO.