TikTok Avoids US Ban With Oracle and Walmart Partnership
TikTok reaches a last-minute agreement with Oracle and Walmart to create a new US-based company called TikTok Global. The deal, approved by President Trump, delays a pending app store ban and places Oracle in charge of securing all user data.
TikTok reaches a proposal with Oracle and Walmart just hours before a scheduled ban on new app downloads in the United States. The agreement establishes a new entity called TikTok Global, which allows the two American companies to take up to a 20 percent cumulative stake in the business.
President Donald Trump approves the deal, prompting the Commerce Department to delay the initial download ban by one week. Under the terms of the agreement, TikTok Global maintains its headquarters in the United States and promises to create 25,000 new jobs across the country.
Oracle takes responsibility for securely storing all user data and gains the ability to review TikTok's source code to address national security concerns. This partnership arrangement serves as an alternative to a complete sale of the app by its Chinese parent company, ByteDance.