TikTok Announces Deal With Oracle and Walmart, Trump Approves

[MacRumors]

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.

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.

Article Link: TikTok Announces Deal With Oracle and Walmart, Trump Approves

 

[now i see it]

Whew- I was afraid I wouldn't be able to make my little dance videos for utter strangers

 

[hagar]

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.

 

[mdatwood]

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.

 

[-DMN-]

Introducing: OraWalTok

 

[jhowarth]

Whew- I was afraid I wouldn't be able to make my little dance videos for utter strangers

Well, we wouldn't want to miss jewels like these...

This is a very reasonable response if you ask me. Totally sane and very safe while driving.

 

[hagjohn]

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.

 

[IIGS User]

The Tik Tok logo gives me a headache....

 

[Nordichund]

I wonder if this would have happened if TickTock had been Russian?

 

[Romeo_Nightfall]

I wonder if this would have happened if TickTock had been Russian?

i Wonder if it had happened if it was German
[automerge]1600610862[/automerge]

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.

some basic understanding of the word,technology provider would be well appreciated

 

[itsmilo]

25,000 Jobs? How much can they possibly work on. Also Walmart? So random

 

[CoolBradG]

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.

According to Trump's impromptu ramblings yesterday, China would have no part, or ownership, in the US platform and the data would be stored in a US-based cloud.

Looks like yet another thing coming from this administration that doesn't add up.

 

[HiVolt]

25,000 jobs for a silly little app that people record silly little videos on?

 

[genovelle]

I wonder if this would have happened if TickTock had been Russian?

We would not have heard a peep

 

[hagjohn]

some basic understanding of the word,technology provider would be well appreciated

According to Trump's impromptu ramblings yesterday, China would have no part, or ownership, in the US platform and the data would be stored in a US-based cloud.

Looks like yet another thing coming from this administration that doesn't add up.

Doesn't negate anyone from doing many number of things to get info to China, if that was really happening in the first place, which is still suspect. Just because it is stored here, doesn't mean **** and anyone with a trickle of tech info knows that.

 

[venusboy]

Doesn't negate anyone from doing many number of things to get info to China, if that was really happening in the first place, which is still suspect. Just because it is stored here, doesn't mean **** and anyone with a trickle of tech info knows that.

It’s pronounced GINA

 

[Dwalls90]

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.

Spot on. The 25K jobs will be another presidential deal promise not kept. Oracle’s executive is a Trump Donor, and none of Tik Tik’s technology was forced to be changed. It’s just a smoke and mirrors election tool, and Americans benefit in no shape or form

 

[and 1989 others]

It will hire 25,000 people to do what? The whole thing is a fad, it wont exist in two years.

 

[calzon65]

It feels a bit odd to have Oracle (a corporate software company) in the social media space, but Walmart in the social media software space ... that's out there.

 

[lixuelai]

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.

ByteDance itself has 40% American ownership

 

[69Mustang]

It will hire 25,000 people to do what?

Work in the Foxconn factory in Wisconsin.

 

[btrach144]

This is a fad app! It’ll be dead within 12 months

 

[hagar]

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.

It doesn’t because it’s all fake news. Trump invented an enemy and beat him, while creating 25000 jobs. Obviously non of it is true, but who cares?

 

[NufSaid]

Bipartisan support for this.

Making the Art of the deal great again.

 

[Deliro]

This is a fad app! It’ll be dead within 12 months

Wasn't vine nearly the same thing? I saw some of the videos on tiktok from my daughter's device and of course it's filled with a bunch of toxicity like other social media platforms. Narcissistic people spewing their beliefs and if you don't agree you are evil.