Trump Gives Preliminary Approval to Oracle and Walmart TikTok Partnership
President Trump backs a new deal allowing Oracle and Walmart to take minority stakes in TikTok, averting an immediate U.S. shutdown. The agreement promises new jobs, a future IPO, and a $5 billion education contribution.
President Donald Trump gives his preliminary blessing to a deal involving Oracle and Walmart partnering with the popular video-sharing app TikTok in the United States. This agreement allows the app to avoid an immediate shutdown, as the U.S. Department of Commerce delays its prohibition of U.S. transactions with TikTok until the following Sunday.
Under the terms of the arrangement, Oracle serves as TikTok's secure cloud provider and takes a 12.5% minority stake, while Walmart tentatively agrees to purchase a 7.5% stake with its CEO securing a seat on the new five-member board. TikTok's Chinese parent company ByteDance retains an 80% ownership share, though the administration notes that U.S. investors technically hold a majority financial interest when factoring in their 40% stake in ByteDance.
The newly formed TikTok Global plans to maintain its U.S. headquarters, create 25,000 American jobs, and work toward an initial public offering within the next year. Additionally, the companies pledge over $5 billion in new tax payments to the U.S. Treasury Department and commit to building a large education fund to provide online learning videos for American youth.