TikTok has reached a deal with Oracle and Walmart that will ensure it does not get banned in the United States later today. The deal has reportedly also been approved by U.S. President Donald Trump.
As a part of the deal, TikTok will be opening a new company called TikTok Global of which 12.5 percent stake will be owned by Oracle and Walmart owning 7.5 percent via pre-IPO financing. Both companies combined would be paying $12 billion if they agree to the $60 billion valuation by ByteDance.
One of the board members of the company will be Walmart’s CEO Doug McMillion, with the other four seats also being filled by Americans.
“I approved the deal in concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they get it done, that’s great. If they don’t, that’s OK too.”
TikTok Global will also be funneling $5 billion to the U.S. and also set up a new education fund. It also claims that it will be creating 25,000 jobs in the country.
“They’re going to be setting up a very large fund,” he said. “That’s their contribution that I’ve been asking for.”
As a part of the agreement, Oracle will also be hosting all of TikTok’s data in the U.S. on its Generation 2 Cloud. Due to Trump’s approval, the ban on TikTok’s download in the United States has now been delayed by a week.
As for the WeChat download ban, that has now been delayed as the U.S. Magistrate Judge Laurel Beeler has blocked the Commerce Department order.
U.S. Magistrate Judge Laurel Beeler in San Francisco said in an order that WeChat users who filed a lawsuit “have shown serious questions going to the merits of the First Amendment claim, the balance of hardships tips in the plaintiffs’ favor.”
The preliminary injunction also blocks the U.S. Commerce Department order that would have blocked other transactions with WeChat in the United States.[Via TikTok, Bloomberg]