was pressured into a deal for TikTok
when Trump threatened to ban the app in the U.S. over national security concerns. After Microsoft Corp. made a proposal for a full buyout of the service, ByteDance
instead turned to Oracle’s offering in which the Chinese parent will maintain a solid majority stake.
“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.”
ByteDance and Oracle
representatives didn’t immediately respond to requests for comment.
ByteDance may end up owning as much as 80% of TikTok Global, which would include the app’s operations in the U.S. and the rest of the world excluding China.
Venture firms, including Sequoia Capital and General Atlantic, may also acquire equity in the new business.
Under the current proposal, there will be five seats on the board of TikTok Global. Walmart’s Chief Executive Officer Doug McMillon will become a director, the retailer said in a statement.
Oracle has given reassurances that it can protect TikTok user data from foreign influence.
“Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud,” said Oracle CEO Safra Catz in a statement. “We are a 100% confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users.”
The company will get full access to review TikTok’s source code and updates to make sure there are no back doors used by the company’s Chinese parent to gather data or to spy on the video-sharing app’s 100 million American users, according to people familiar with the matter.
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