Donald Trump put the short video platform TikTok under pressure for weeks, but now it is allowed to stay in the US market.
The future of Tiktok in the US seems assured after President Donald Trump approved a deal between Chinese owner Bytedance and US companies Oracle and Walmart.
TikTok’s global business will be in a new company based in the United States, “probably in Texas.” Trump said on Sunday night.
However, the negotiations are still ongoing. Certainly, the approval of Oracle and Walmart as partners for the cloud and commercial sector respectively, have caused Trump to change his mind on the Chinese ban.
A formal lifting of the TikTok ban in the US is still pending. The Department of Commerce postponed the blocking of TikTok downloads until September 27th.
Because as part of the agreement, TikTok must create a new company called TikTok Global, which will be responsible for providing all of TikTok’s services to users in the United States and to most users in the rest of the world. All TikTok technology will be owned by TikTok Global and will comply with US privacy laws and regulations.
Oracle and Walmart will jointly invest in a 20% business acquisition of TikTok Global.
Oracle is chosen to become TikTok’s secure cloud technology provider. This technical decision by TikTok was heavily influenced by Zoom’s recent success in moving much of its video conferencing business to Oracle’s Public Cloud.
“TikTok chose Oracle’s new second-generation Cloud infrastructure because it is much faster, more reliable and more secure than the first-generation technology currently offered by all other major cloud vendors,” said Larry Ellison, Founder, and Chief Oracle Technology Officer.
Oracle’s task will also be to use its secure cloud technology in continuous code review, monitoring and auditing to provide a guarantee on the data security of American users who use TikTok.
As for Walmart, in addition to its equity position, it will bring its omnichannel retail capabilities to TikTok Global will undoubtedly be a deal for Americans because it will create more than 25,000 new jobs in the US Walmart and will pay more than 5 billion in new taxes to the US Treasury.