Donald Trump recently said that he has approved the deal between TikTok, Oracle, and Walmart, clearing the path for ByteDance-backed TikTok to continue its business in the United States without the fear of getting banned.
Oracle will be owning about a 12.5 percent stake in the company while Walmart CEO Doug McMillon will join the company’s board. ByteDance founder Zhang Yiming and the Chinese company’s current directors — Sequoia China’s Neil Shen and General Atlantic’s William Ford — will reprise their roles.
In a statement released by the company, it confirmed that ByteDance will retain full control of its social media algorithms but will allow Oracle limited access to view source code for “safety” purposes.
The company has contested Trump’s assertions that the U.S. government will get $5 billion as part of the deal. ByteDance said that the figure was just an estimate of the amount of taxes TikTok Global would pay over several years if the business proved successful.
Earlier, in a joint statement released by Oracle and Walmart, it was said that TikTok will pay more than $5 billion in “new tax dollars to the U.S. Treasury” and develop an AI-driven online video curriculum.
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As a part of the agreement, a new entity named TikTok Global will be created in which Oracle and Walmart will hold a minority stake. ByteDance has confirmed that it will continue to remain in control of the business, contradicting Trump’s claim of American companies being in control of TikTok.
The Chinese giant is expected to hold about 80 percent stake in TikTok Global, which could be valued at around $60 billion. It is not yet clear if the deal needs approval from the Chinese government or not.
Meanwhile, the Trump administration had banned WeChat downloads and transactions on the platform, effective 20th September. However, a judge has blocked the ban on WeChat and allowed the app to continue operation.
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