Oracle and Walmart Secure Ownership Stakes in New TikTok Global Entity
Oracle takes a 12.5% equity stake and Walmart secures 7.5% in the newly formed TikTok Global as part of a deal approved by President Trump. The new U.S.-based entity promises to pay over $5 billion in new tax dollars to the U.S. Treasury.
Oracle takes a 12.5% ownership stake in the newly formed TikTok Global, a U.S.-based entity created to satisfy the Trump administration's demand for ByteDance to divest the video app's American operations. Walmart also joins the partnership by securing a 7.5% equity stake in the restructured company.
President Trump approves the deal "in concept," prompting the administration to delay the planned U.S. download ban on TikTok by one week to September 27. As part of this agreement, the new TikTok Global entity pledges to pay more than $5 billion in new tax dollars to the U.S. Treasury.
Under the terms of the arrangement with Beijing-based ByteDance, TikTok Global runs its app business entirely on the Oracle Cloud. This technological partnership is spearheaded by Oracle CEO Safra Catz, while Oracle chairman Larry Ellison maintains close ties to the president as a public supporter and former fundraiser.