Trump blesses TikTok deal with Oracle and Walmart, revealing headquarters will be in Texas and company will make $ 5 billion donation to education
- Donald Trump said Saturday afternoon that he would accept the deal from TikTok
- Under the deal, Oracle will lead a coalition of owners, including Walmart
- TikTok is currently owned by Beijing-based ByteDance
- Trump ordered the sale last month, saying he might close it otherwise
Donald Trump has approved a deal that will see Oracle lead a coalition to buy TikTok from Chinese company ByteDance.
Last month, Trump ordered ByteDance to sell TikTok or it would shut down in the United States.
About 100 million Americans use TikTok, and US officials have voiced concerns about user data and the ability for China to access that data.
On Saturday, shortly before leaving for a campaign meeting in North Carolina, the president said he had given the green light for a bid from California-based Oracle, in partnership with Walmart.
“I gave the deal my blessing,” he said, adding that the agreement “has nothing to do with China.”
He continued: “It will be completely safe, that’s part of the deal.”
Donald Trump announced on Saturday that he has approved a deal for Oracle to buy TikTok
The Chinese government must now approve the Oracle-led deal to proceed
The president said the new company would be headquartered in Texas, hire as many as 25,000 people and contribute $ 5 billion to American education.
The Chinese government must now sign the transaction to proceed.
TikTok is currently owned by Beijing-based ByteDance, and Trump ordered the sale last month, otherwise he said he would shut it down in the US.
On Thursday, Trump said his administration had talked to Walmart and Oracle about TikTok, but at the time, there was no agreement on the short video app in Chinese hands.
“We’ll make a decision,” he said on Thursday.
“We spoke to Walmart, Oracle today. I think Microsoft is still involved.
‘We will make a decision, but not much has changed. We will make a decision shortly. ‘
ByteDance was racing to negotiate a deal with the White House that would prevent a US ban on TikTok, which has threatened Trump, from happening next week.
Reuters reported on Thursday that the new company, called TikTok Global, will have a majority of US executives, a US CEO and a security expert on its board.
Oracle has agreed to eventually own a 20 percent stake in the company, according to a Reuters source.
Walmart CEO Doug McMillon will also be taking a seat on the board of TikTok Global, the source said.
Trump said the new TikTok company will be “ completely controlled by Oracle and Walmart. ”