(AmericanPoliticalDaily.com)- TikTok will be allowed to continue operating in the United States after President Donald Trump approved a deal between the social media app and California-based Oracle.
The deal makes Oracle only a minority shareholder of TikTok, but it gives them complete control over all U.S. data the company has. Other parts of the company will be assumed by Walmart and other venture capital firms based in the U.S.
This new company will appoint leadership based in the U.S., and its global headquarters will be based in America.
ByteDance, the parent company of TikTok that is based in China, will continue to own roughly 80% of the company. Sources familiar with the deal told Politico that since ByteDance is already held by international and American investors, the addition of Walmart and Oracle will make it a company that has an American majority as its owners.
On Saturday, Trump said of the agreement:
“I have given the deal my blessing. If they get it done that’s great. If they don’t, that’s fine, too.”
The U.S. was initially going to implement restrictions on TikTok in America as of Sunday night, but the Commerce Department extended that deadline to September 27 “in light of recent positive developments,” it said Saturday night.
The deal isn’t finalized yet, as it’s still subject to conditions that are set by the Committee on Foreign Investments in the U.S. All deals that have potential national security implications are reviewed by that federal body.
Originally, Trump said ByteDance had to either sell its U.S. interests to an American buyer or shut down operations in the country. This new deal doesn’t accomplish that, but it does shift much of the power to American interests. It also removes control of U.S. data from Chinese control.
Oracle said it will own roughly 12.5% of the new company. Walmart could own up to 20%. Sequoia and General Atlantic, both venture capital firms, will own large chunks of the company as well.
Vanessa Pappas, the interim head of TikTok, said in a statement to users:
“We are here for you, and we are here for the long run. That’s why we’re thrilled to share that we are working with a U.S. tech partner to ensure that TikTok can continue to provide a home to each and every one of you just as it does today, with no change to our users here in the U.S. or around the world.”
A new board of directors that will be made up of mostly U.S. citizens will be appointed soon, sources told Politico. The source also said the federal government would have the ability to veto members on that board.
It’s also possible that at least one former official of the intelligence community or a national security expert could lead a separate three-person committee that oversees security matters in TikTok.
Safra Catz, the CEO of Oracle, said in a statement:
“We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users, and users throughout the world. This greatly improved security and guaranteed privacy will enable the continued rapid growth of the TikTok user community to benefit all stakeholders.”