As a deadline loomed for TikTok to shut down its US operations, President Donald Trump said Saturday he has agreed in concept to a deal under which Chinese-owned app TikTok can continue.
Trump said a partnership with Oracle and Walmart that will make the video-sharing company and its data US-based has won him over.
“I have given the deal my blessing, if they get it done, that’s okay too, if they don’t, that’s fine too,” Trump told reporters at the White House on Saturday.
Trump said the deal will create 25,000 jobs, and that the new US version of TikTok “will have nothing to do with China.” He said Oracle and Walmart will set up a $5 billion fund to educate young Americans, but didn’t elaborate.
“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok’s future in the US,” the statement reads,” a rep for TikTok said. “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. We are currently working with Walmart on a commercial partnership 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.”
“As a part of this agreement, TikTok will run on the Oracle Cloud and Oracle will become a minority investor in TikTok Global,” said Oracle CEO Safra Catz. “Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud. We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users, and users throughout the world. This greatly improved security and guaranteed privacy will enable the continued rapid growth of the TikTok user community to benefit all stakeholders.”
TikTok came under fire after Trump said it posed a national security threat. He signed an executive order in August that forced its owner, Beijing-based ByteDance Ltd., to pursue a sale or partnership with a U.S. company.
Trump voiced concerns over TikTok providing data on US citizens to the Chinese government. ByteDance insisted it would never do that.
Microsoft and Twitter also explored a deal with TikTok, but Oracle ultimately prevailed.
The Commerce Department on Friday issued regulations barring U.S. companies from providing downloads or updates for TikTok after 11:59 p.m. Sunday. That order also covers WeChat, another Chinese app that isn’t covered by the new TikTok deal.