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Deal For Tik Tok Global; Oracle And Walmart To Own Stakes - The Tech Education
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Trump Approves A Deal For Tik Tok Global; Oracle And Walmart To Own Stakes

September 20, 2020
2 Min Read

President, Donald Trump, on Saturday said, he has approved a deal between Walmart and Oracle, over the issue of Tik Tok being banned in the country.

What Is The Deal?

Trump “blessed” the deal in which Oracle and Walmart would partner with Tik Tok in the US.

He said, if the deal works, it’s great, and if not it’s fine too. He added that he has approved the deal “in concept.”

Oracle announced; it would be a secure cloud provider to Tik Tok and a minor investor with a 12.5% stake. Oracle will have a commercial partnership with Walmart, that has tentatively agreed to a purchase of 7.5%  stake.

Carl Douglas McMillon will be one of the five board members of the new company.

 

Moreover, the CEO of Walmart will serve as one of the five board members of the newly created company.

Therefore, together Oracle and Walmart will own a 20% stake in the company.

How Does The USA Now Own Tik Tok?

The Chinese company, ByteDance, the parent company of Tik Tok, owns the remaining 80% stakes of Tik Tok. However, 40% of ByteDance is owned by US venture capital firms.

And, therefore, Trump administration can now claim that Tik Tok Global is now majority-owned by the US money.

Apart from this, Trump said the company would make a $5 billion contribution to an education fund. However, the name of the fund is unknown.

Tim Tok said it would expand its headquarters in the US which will approximately bring 25,000 job opportunities across the country. Further, Trump stated, a new company is likely to be incorporated in Texas.

However, Tik Tok will be banned from the US app stores for a week.

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