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Donald Trump lobbied the video app Tiktok for weeks, but now it is allowed to stay in the US market. Trump’s deal: Tiktok’s global business moves to the United States, and the company pays $ 5 billion to an education fund in Texas.
The future of the video app TikTok in the US seems assured after President Donald Trump approved a deal between Chinese owner Bytedance and American companies. TikTok’s global business will be in a new US-based company, “probably in Texas,” Trump said Sunday night. “I signed the deal.”
A formal lifting of US measures against TikTok is still pending. The United States government postponed the TikTok download block planned for Sunday for a week. The Commerce Ministry announced on Saturday that the decision was made “in view of the latest positive developments.” Shortly before, TikTok had confirmed that it was targeting a deal with software company Oracle and retail giant Walmart. Consequently, Oracle is expected to become a technology partner of the US branch of the Chinese company and Walmart to become a business partner.
Trump called TikTok a security risk because the app belongs to the Chinese group Bytedance. In his opinion, the Chinese authorities could have obtained data from Americans through the application. By following this reasoning, he laid the groundwork for exiting the application in the US with two orders. TikTok and Bytedance replied to no avail that US user data was stored in the US and not going to China.
After the agreement, which has already been approved, the software company Oracle will process all the data of the US users and take care of the associated technical systems. Trump and TikTok announced that 25,000 jobs would be created in the United States.
A central Trump demand was also that American investors have a majority on TikTok. Additionally, it was only officially announced that Oracle will take a 12.5 percent stake in the company ahead of an initial public offering from TikTok Global and that supermarket giant Walmart will hold 7.5 percent.
At the same time, the “Wall Street Journal” reported that Bytedance would take the remaining 80 percent of TikTok Global. But: Given that American investors like start-ups Sequoia and General Atlantic in turn owned about 40 percent of Bytedance, one could speak of an American majority on TikTok, people informed the newspaper told. Trump had previously announced: “It will be a completely new company. It will have nothing to do with China.”
New construction could have the advantage that the deal would not require Chinese government approval. The leadership in Beijing had previously torpedoed a direct sale of the US TikTok business to the Microsoft software group. It introduced a new rule according to which software algorithms can only be sold abroad with the permission of the authorities.
Trump, for his part, had rejected a deal in which Oracle would act as TikTok’s technology partner with a minority stake a few days ago. The Commerce Department then began a countdown for TikTok to be kicked out of the US app stores.TikTok and Bytedance filed a lawsuit in Washington.
What’s new is that TikTok will now transfer $ 5 billion (€ 4.23 billion) to an education fund in Texas, as Trump said during an election campaign in Fayetteville, North Carolina. He had previously requested that the United States government obtain some kind of commission to achieve the agreement. The education fund must ensure that “the real history of our country is taught,” Trump said. A few days ago he announced the formation of a commission to promote patriotic education; the Republican justified it by the fact that the historical importance of slavery was currently being exaggerated.
Those: Apa / Ag.
