A temporary reprieve has come the way of embattled TikTok as report says the Chinese-owned app has been given more 15 days to sort out its deal with Walmart and Oracle. As per CNN, the video-sharing app will have until November 27th to persuade the US national security officials that its proposed deals with the two companies will sail through and get the needed approval.
Under an executive order signed by President Donald Trump weeks back, Thursday was supposed to be the deadline. Apparently this has now changed as the company has another fortnight to sort itself out and continue to have its app accessible to millions of users in the US.
TikTok told a federal judge that the US government had granted its request for an extension. Though, this does not resolve the many issues the company is currently faced with, the extension granted by the federal judge, TikTok should see this has an opportunity to tidy up things. While the time granted by the court might be short, the Chinese company should see this as an opportunity to move fast.
So, to all you TikTok users in the US, your favorite app is still accessible; but the company faces a race against time to sort itself out.
In September, President Donald Trump gave his approval to keeping TikTok in the US. This would also mean that the president does not have any issues with Oracle’s bid for the Chinese-owned short-clip app. This came less than one day before a de facto ban threatened by the president back in August was to take effect. “I have given the deal my blessing,” Trump said to reporters per The Verge. “I approved the deal in concept.”
Also in September, the Commerce Department had issued an order to block transactions with TikTok and its parent company ByteDance and another Chinese company WeChat, which would have taken effect the same day Trump gave his nod. The order, however, will now take effect from November 12th for TikTok, which will effectively halt its operations.
The new TikTok, which will have its headquarter in Texas, would hire up to 25,000 people, and would be called TikTok Global. The company will also contribute $5 billion toward US education, Bloomberg reports. “They’re going to be setting up a very large fund,” the president said. “That’s their contribution that I’ve been asking for.”
“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok’s future in the US,” a TikTok spokesperson said in an email to The Verge. “As part of the deal, Oracle will become TikTok’s “trusted technology provider.”