Trump and TikTok agree to continue the video app
US President Donald Trump said on Saturday that he supports in principle a deal that would allow TikTok to continue operating in the United States, even if it appeared to conflict with his previous order to withdraw ownership of the video app from the Chinese company, ByteDance…
ByteDance was racing to avoid a Tik Tok ban after the US Commerce Department said on Friday it would block new downloads and updates to the app on Sunday.
US officials have expressed concern that the personal data of up to 100 million citizens who use the app will be transferred to the Chinese Communist Party government.
Trump signed an executive order on August 14 giving ByteDance a 90-day period to sell Tik Tok. However, the deal announced yesterday is based on a partnership, not a divestment.
The president said TikTok will be owned by a new company called TikTok Global and will be based in the United States, and possibly Texas.
The two companies said that Oracle will acquire 12.5% of TikTok Global and store all US user data on its cloud to comply with US national security requirements. The retail giant Wallmart will acquire a 7.5% stake in TikTok Global.
Beijing-based BiteDance did not immediately respond to requests for comment. Walmart and Oracle also did not provide further information about TikTok Global’s ownership structure.