TikTok deal approved by Trump in US

WeChat and TikTok avoided the ban by the US Department of Commerce at the 11th hour – the ban was alleged to enter effect on Sunday, however US Magistrate Judge Laurel Beeler blocked it, saying it raises serious questions on the primary amendment (which guarantees freedom of speech).

WeChat was watching an entire disruption of its US operations while TikTok was given a grace period as owner ByteDance keeps negotiating with US companies for a deal that might satisfy the national security concerns which are cited because the main reason for the ban.

Such a deal looked dead within the water on Friday, but it suddenly bounced back to life. President Trump has approved a deal that might see the creation of a replacement company, TikTok Global, which can be a collaboration between current owner ByteDance and two US companies – Oracle (which would have a 12.5% stake) and Walmart (7.5% stake). this is able to leave the Chinese company with 80% of the shares.

Four of the five board members of the new company are going to be Americans. Oracle will provide secure cloud services while Walmart will handle things like advertising, payments and fulfillment. Microsoft won't be involved.

According to Walmart’s handout , TikTok Global will go public with an IPO “in less than 12 months”. it'll be listed on the a US stock market , this may cause a growing US ownership. the corporate are going to be headquartered within the US and can create some 25,000 jobs.

ByteDance stated that it'll not transfer its technology and algorithm to Oracle. However, Oracle are going to be allowed to examine the ASCII text file to make sure there’s nothing shady behind the scenes.

Some details are still unclear, however. President Trump said on Saturday the businesses involved in TikTok Global have agreed to donate $5 billion towards an education fund which will teach “the real history of our country”. However, ByteDance wasn't conscious of such an education fund being a part of the deal. Interestingly, TikTok Global are going to be responsible of the cash and can be the one deciding how it's invested.