Trump says he has approved a deal for purchase of TikTok

Joanna Estrada
September 21, 2020

Restrictions on TikTok were pushed back by a week Saturday after President Donald Trump said he supported a proposed deal that would make TikTok a US company.

Oracle the winning bidder for a deal with TikTok's USA operations, people familiar with the talks said, after main rival Microsoft Corp. announced its offer for the video app was rejected.

"Conceptually, I think it's a great deal for America", Trump said. "I approved the deal in concept". The parties have said that four of the five board members would be AmericanWhether Trump will get a payoutTikTok Global will pay more than $5 billion in new tax dollars to the U.S. Treasury, but that doesn't align with Trump's boast about an education fund "They're going to be setting up a very large fund", Trump said Saturday, adding that it will be used to fund "patriotic education".

Meanwhile, TikTok late Friday filed an 11th-hour lawsuit seeking an injunction stopping the Commerce Department's decree that TikTok (and another Chinese-owned app, WeChat) would no longer be allowed to be downloaded from app stores after 11:59 p.m. on Sunday, the Wall Street Journal reported.

In a statement, TikTok said: "We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the United States administration and settle questions around TikTok's future in the US".

According to a source close to the matter, ByteDance would keep the rest of the shares.

As it stands, it looks like TikTok Global will be owned by Oracle, at 12.5 percent, and Walmart, at 7.5 percent, with ByteDance retaining 80 percent.

It was ordered amid an ongoing technology and espionage battle between Washington and Beijing.

Ms Pappas said the company had brought forward a proposal that "resolved the administration's security concerns and settled questions around TikTok's future in the US". It will also be responsible for hosting the company's U.S. data and securing all the associated computer systems such that it addresses all the concerns raised by the local authorities.

The Trump administration had planned effectively to ban WeChat and fellow Chinese-owned app TikTok in the US late Sunday by preventing them from appearing in mobile-phone app stores.

The app is reported to have around 800 million active monthly users worldwide, most of whom are in the U.S. and India.

The President's stamp of approval bodes extremely well for the deal, however, a formal review and official approval are still pending.

The news release includes a quote from Ellison that takes a swipe at Oracle's larger cloud rivals, saying that "TikTok picked Oracle's new Generation 2 Cloud infrastructure because it's much faster, more reliable, and more secure than the first-generation technology now offered by all the other major cloud providers".

The Chinese tech giant also stated that it is further evaluating the impact of prohibited transaction identification on the company.

Following the TikTok-Oracle-Walmart deal's announcement, TikTok users will be banned from installing updates starting September 27.

Specific evidence about WeChat posing a national security threat was also 'modest, ' according to Judge Beeler.

Chinese-owned TikTok was set to be banned from Apple and Google's app stores at midnight on Sunday because of security concerns. "As a part of this agreement, TikTok will run on the Oracle Cloud and Oracle will become a minority investor in TikTok Global", she said.

With Trump facing a tough reelection campaign, USA officials have described the measures as essential to safeguard against potential Chinese espionage through the platforms. However, TikTok did send along its comment on the administration's decision to ban the app.

Other reports by Click Lancashire

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