Donald Trump, president of U.S. said that he supports a deal which will permit TikTok to continue its operations in the U.S. In August, the U.S. threatened to ban TikTok.
The deal is that the TikTok’s owner Bytedance, Oracle and Walmart will create a new company that will assume TikTok’s U.S. operations known as TikTok Global.
Oracle will be responsible for protecting all U.S.’s user data, as per the U.S. Treasury.
Trump said the new company will be “totally controlled by Oracle and Walmart … All of the control is Oracle and Walmart.”
Oracle will have a 12.5 per-cent stake in TikTok Global. Oracle and Walmart together can take up to a 20 % cumulative stake in the company. Rest 80 % will be held by ByteDance.
TikTok said it was “pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. Administration and settle questions around TikTok’s future in the U.S.”
Trump has offered strong support to the deal and said that this deal would create 25,000 U.S. jobs. He said that he approves the deal in concept.
Around 100 million Americans use TikTok. Earlier U.S. officials showed their concern regarding user data breach by China.
Trump told reporters that security will be 100 per-cent. As per reports by Reuters, TikTok Global will be having American directors in the majority on the board.
Trump said that a $5 billion U.S. education fund would be a part of the deal as well. He added that the new company will likely be in Texas with at least 25,000 employees.
Greg Abbott, Texas Governor earlier on Twitter said that he had been in talks with Trump regarding the deal. He said that if Trump is to approve the deal then Texas is the best place for the Head Quarters.