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WASHINGTON – US President Donald Trump said on Saturday that he had approved the giant database offering Oracle for US operations on TikTok after signing executive orders last month banning the popular Chinese video-sharing app, considered by the government a threat to national security.
“I gave my blessing to the deal,” Trump told reporters as he left the White House for a campaign rally in Fayetteville, North Carolina. – I approved the concept of the agreement.
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The deal would become a new multinational company based in the United States, with Oracle and other investors holding a minority stake.
Under the terms of the agreement between the two companies, Bytedance, owner of TikTok, will retain most of the app’s assets and control its algorithm.
The Chinese government must now support the transaction for it to proceed, which could be a problem in light of recent restrictions on technology exports adopted by Beijing.
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The new company formed in partnership with Oracle would be called TikTok Global, according to Treasury Secretary Steven Mnuchin.
Trump said the new company will be based in Texas, hire up to 25,000 people, and contribute $ 5 billion to education in the United States.
The new company plans to hold an initial public offering of shares in about a year, according to people familiar with the matter.
He said it would honor his request for a contribution to the US government to help organize the deal.
“They are going to create a very large fund,” Trump said. – That’s the contribution I’ve been asking for.
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The request was reportedly made in a phone call on Friday, in which Trump told Oracle president Larry Ellison and WalMart chief executive Doug McMillon (the retail giant would be a partner in the transaction) that he was still waiting for the US government US received a cash payment as part of the transition.
China on hold
This Saturday, China launched a mechanism that allows the country to sanction foreign companies, another step in the technological war with the United States. The change comes a day after Washington imposed a ban on downloading TikTok and WeChat in the United States, which would take effect on Sunday.
Meanwhile, TikTok has asked a U.S. judge to stop the Trump administration from banning its operations on U.S. soil, according to court documents filed last Friday.
