After threatening to ban Chinese video-sharing app TikTok in August, US President Donald Trump has said that he supports a deal that will allow the app to continue to operate in the United States.
The development comes as the US Commerce Department on Saturday announced a one-week delay until Sept 27 on the order to ban the app on Apple's App Store and Google Play store for download.
Trump told reporters at the White House he backs the deal with TikTok owner ByteDance, Oracle and Walmart to create a new company that will assume TikTok’s US operations called TikTok Global.
The US Treasury said in a statement “Oracle will be responsible for key technology and security responsibilities to protect all US user data. Approval of the transaction is subject to a closing with Oracle and Walmart and necessary documentation and conditions to be approved by” the Committee on Foreign Investment in the United States.
Trump said the new company will be “totally controlled by Oracle and Walmart ... All of the control is Oracle and Walmart.”
Oracle said it will take a 12.5% stake in TikTok Global.
TikTok said under the deal, 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.
US investors currently own about 40% of ByteDance.
TikTok said it was “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”
TikTok said Oracle will become the company’s “trusted technology provider, responsible for hosting all US user data and securing associated computer systems to ensure US national security requirements are fully satisfied.”
Trump offered strong support for the deal he said would create 25,000 US jobs. “I have given the deal my blessing,” Trump said. “I approve the deal in concept.”
About 100 million Americans use TikTok and US officials have expressed concern about user data and the potential for China to access that data.
