TikTok has officially confirmed the report, announcing the formation of TikTok Global, as well as Oracle and Walmart’s participation in a pre IPO round, in a blog post.
“We’re pleased that today we’ve confirmed a proposal that resolves the Administration’s security concerns and settles questions around TikTok’s future in the US. Our plan is extensive and consistent with previous CFIUS resolutions, including working with Oracle, who will be our trusted cloud and technology provider responsible for fully securing our users’ data. We are committed to protecting our users globally and providing the highest levels of security. Both Oracle and Walmart will take part in a TikTok Global pre-IPO financing round in which they can take up to a 20% cumulative stake in the company. We will also maintain and expand the US as TikTok Global’s headquarters while bringing 25,000 jobs across the country,” the post read.
The journey of TikTok in America has been nothing short of a rollercoaster, with every high followed by an equal low. This week, when the company faced its lowest low yet with the order that seeked to ban downloads of the platform from all mobile app stores in the country starting 20 September, people were just hoping for the highest high to come by. And perhaps, it is finally here. According to a Bloomberg report, President Trump has reportedly given his stamp of approval to the TikTok-Oracle deal, at least “in concept,” and we might hear an official announcement very soon.
With this move, the formation of a new entity-“TikTok Global” seems imminent, rumours of which have been doing the rounds of internet for quite some days now. This new entity will see America retaining a majority stake, through investors and companies like Oracle, Walmart and reportedly, even Microsoft.
Bloomberg reported that Trump said the new company would be headquartered in Texas, would hire as many as 25,000 people and would contribute $5 billion toward U.S. education. Moreover, the bulk of the company’s operations will now be shifted to Los Angeles.
If the deal has in fact received an approval, TikTok fiasco may finally come to an end, although I would not get my hopes up. This is because every time it seems like everything is finally settled with the platform, a new problem automatically emerges. China is already in a pseudo technological war with America, and has been disgruntled by the whole ordeal. The government went as far as to change its export rules to give itself a say in any deal that TikTok may form, something that can cause more obstructions in the future, especially since a report from Reuters claimed that TikTok in the US is better dead to China than sold.
As of yet, TikTok is set to be removed from mobile app stores in America by 20th September, with a complete ban coming on 12th November, which will be curtailed if this deal goes through.