President Donald Trump has okayed 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 last month was to take effect. “I have given the deal my blessing,” Trump said to reporters per The Verge. “I approved the deal in concept.”
On Friday, 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 today. 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.”
“We are currently working with Walmart on a commercial partnership as well. Both companies 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,” the spokesperson said.
With this, all seems set for Oracle to be a big part of TikTok’s future, which gives the Chinese company the respite it needs to remain in the shores of the US–free from being asked to leave.
“Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud,” Safra Catz Oracle CEO. “We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users, and users throughout the world.”
Last month, TikTok went to court to challenge the government’s executive order. Recall that President Trump had released a separate Executive Order on August 14 giving TikTok a 90-day period to divest its operations in the US.
Though, the company was reportedly in talks with a couple of would-be buyers including Oracle and Microsoft at the time, its decision to head to the court could open an entirely new chapter in the whole saga that could drag on for a while. “Today we are filing a complaint in federal court challenging the Administration’s efforts to ban TikTok in the US,” the company said in an official blog post.