Politics President Trump says he approved TikTok deal with Walmart, Oracle
Oracle, TikTok, and the Trump administration have reportedly 'tentatively' reached a deal. Here's everything we know about the partnership that could save TikTok from Trump's threats of a US ban.
Many details of the deal are still unknown, but it appears to satisfy some of the US government's national security concerns while making few changes.Oracle, best known as the leading provider of database software and a $187 billion tech titan in its own right, is the unlikely and unexpected partner the Beijing-based ByteDance has chosen to resolve the matter. But the company emerged as the winner this weekend, after Microsoft confirmed Sunday that its bid for TikTok was turned down.
Presidenttold reporters at the White House that a deal has been made on TikTok with and Oracle, calling it a "great deal for America."
"We have some very big news on TikTok," Trump said Saturday. "TikTok is moving along. We’re dealing with Oracle, which you know of, Larry Ellison. And we’re dealing with, as a combination, Walmart -- Walmart, a great company, a great, American company. The security will be 100%. They’ll be using separate clouds and a lot of very, very powerful security. And they’ll be making about a $5 billion contribution toward education."
TikTok’s Owner Is Getting Surer Beijing Will Okay U.S. Deal
TikTok-owner ByteDance Ltd. is getting more confident its envisioned alliance with Oracle Corp. will pass muster with China’s regulators, a critical step in the political clash over the popular video app, people familiar with the matter said. © Bloomberg The download page for ByteDance Ltd.'s TikTok app is arranged for a photograph on a smartphone in Sydney, New South Wales, Australia, on Monday, Sept. 14, 2020. Oracle Corp. is the winning bidder for a deal with TikTok’s U.S. operations, people familiar with the talks said, after main rival Microsoft Corp. announced its offer for the video app was rejected.
"They’re going to be setting up a very large fund for the education of American youth, and that will be great," he added. "That’s their contribution that I’ve been asking for. But we’ll see whether or not it all happens."
When asked by a reporter if he approved the deal, Trump said, "I approve the deal in concept, yes."
Trump said ByteDance, the China-based parent company of TikTok, would "report the full scope of the deal very soon, very soon."
The news of an apparent deal comes a day after the U.S. Department of Commerce announced that starting Sunday, downloads of the massively popular video app, as well as the messaging app WeChat, would be banned in the United States.
U.S. to start blocking TikTok and WeChat downloads Sunday
The U.S. will begin blocking the distribution of the Chinese apps TikTok and WeChat on Sunday, the Department of Commerce said Friday. © Provided by NBC News Commerce said in a news release that U.S. mobile platforms will be prohibited from distributing the apps, meaning new downloads will be blocked. But TikTok will not disappear entirely on Sunday. The app will still work for at least a few more weeks. Commerce said that crucial services that TikTok relies on, such as internet hosting and transit services, will not be prohibited until Nov. 12 — pushing the deadline to after the election.
The department had said in a statement that the move was necessary to "safeguard the national security of the United States."
Trump did not mention WeChat in his conversation with reporters on Saturday.
In August,that would shut down both apps by Sept. 20 if they weren't sold to U.S. owners. The deadline for TikTok was extended to Nov. 12, Commerce Secretary Wilbur Ross said in an interview on Fox Business News Friday morning. In the meantime, updates will be barred in the app, he said.
The ban announced on Friday also prohibits the transfer of funds or processing payments within the U.S. for WeChat.
The administration has claimed the Chinese Communist Party was using data collected through the apps to "threaten the national security, foreign policy and the economy of the U.S."
TikTok has an estimated 65 million to 80 million users in the U.S. and is especially popular among Gen Z-ers. WeChat has some 19 million users in the U.S., with wide use among the Chinese American community.
ABC News' William Mansell and Catherine Thorbecke contributed to this report.
ByteDance says TikTok will become its subsidiary .
ByteDance, the Chinese company that owns TikTok, said Monday that TikTok will become its subsidiary, despite the fact that Oracle and Walmart over the weekend said that U.S. investors would own most of the app.In a Monday statement obtained by Reuters, Bytedance said it will own 80 percent of TikTok Global, a new U.S. company that will have ownership over most of the app's operations internationally, contradicting Oracle and Walmart'sIn a Monday statement obtained by Reuters, Bytedance said it will own 80 percent of TikTok Global, a new U.S. company that will have ownership over most of the app's operations internationally, contradicting Oracle and Walmart's statement.