The US administration has postponed the stop to the TikTok app on September 27 after Oracle and Walmart have agreed to join the future company management reality in the United States under the name of TikTok Global.
The President of the United States, reports a joint note by Oracle and Walmart, announced that ByteDance has received provisional approval of an agreement with the US government to resolve outstanding issues, which will now include Oracle and Walmart,
As part of the agreement, in fact, TikTok is creating a new company called TikTok Global that will be responsible for providing all TikTok services to users in the United States and to most users in the rest of the world.
Of this reality Oracle becomes the cloud provider.
TikTok Global will be majority owned by American investors, including Oracle and Walmart, will be independent, based in the United States, with four Americans out of five members of the Board of Directors.
All technology will be in possession of TikTok Global and will comply with US privacy laws and regulations.
Data privacy for 100 million American TikTok users will be quickly established by moving all American data into Oracle Generation 2 Cloud data centers.
In addition to its share position, Walmart will bring its omnichannel retail capabilities, including its Walmart.com ecommerce.
TikTok Global will create more than 25,000 new jobs in the United States and TikTok Global will pay more than $5 billion in new taxes to the US Treasury.
TikTok Global, together with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue, will create an educational initiative to develop and provide an online video curriculum based on artificial intelligence to teach children from urban centres to
TikTok Global will have an initial public offer within a year and will be listed on a US stock exchange. After the IPO, the US ownership of TikTok Global will increase and continue to grow over time.
Walmart’s comment points out that although there is still work to be done on the final agreements, we have provisionally agreed to purchase 7.5% of TikTok Global and to enter into trade agreements to provide our e-commerce services, fulfillments, payments Our CEO, Doug McMillon, would also be one of the five members of the newly created company’s board of directors. We will also work for an initial public offer of the company in the United States by next year to bring even more property to American citizens. The final transaction will have to be approved by the competent US government agencies.
And if the game for TikTok is defined in a positive way for the US government, the game for WeChat gets complicated.
California judge Laurel Beeler temporarily blocked the stop at WeChat because he violated the freedom of expression guaranteed by the First Amendment.
The injunction effectively suspends the order to Apple and Google to remove WeChat from their app stores.