It’s good news for the popular platform TikTok, that the Trump administration finally approves the Oracle-TikTok deal to stop the platform from being shut-down in the country.
There has been a lot of pressure on Chinese App TikTok that it is spying and Trump executives ordered that to be banned from US app stores from Sunday.
President Trump told reporters he had given his “blessing” to a partnership between TikTok and US firms Oracle and Walmart.
The Trump executive orders also require the removal of WeChat from Apple and Google’s app stores in the United States.
But according to the latest press release, “TikTok” confirmed a new proposal involving Oracle (ORCL) and Walmart (WMT) which aims to “resolve the security concerns of the US Administration.”
Previously, Oracle and ByteDance have submitted a proposal that would spin out TikTok’s global business into a new US company that would have an all-American board and a security committee headed by someone with government security clearances. The new company would initially be majority-owned by ByteDance but would seek to list publicly in the US.
Under the proposal, now Oracle (ORCL) will become TikTok’s “trusted technology provider,” and work is underway to form a commercial partnership with Walmart (WMT).
In separate statements, Walmart said it has tentatively agreed to purchase 7.5% of TikTok Global, while Oracle confirmed it will buy a 12.5% stake. Following the announcements, the US Department of Commerce said the prohibition of TikTok transactions will now be delayed until 11:59 pm on September 27.
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