TikTok avoids ban and closes deal with Oracle and Walmart


Well, it seems that TikTok managed to avoid the ban that was going to fall upon it starting today. Vanessa Pappas, interim head of TikTok, announced last night that the company had reached an agreement with Oracle and Walmart that would keep the video-sharing platform active in the United States.

According to reports from Bloomberg, TikTok has reached a deal with Oracle and Walmart. President Trump has also approved the deal, and it will effectively establish a new company called TikTok Global. This new company will be headquartered in the US, and it would allegedly create 25,000 jobs in the country. Pappas also said that Oracle would be responsible for storing user data to protect its user’s privacy.

“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 deal was reached just hours before the US commerce Department set to ban the TikTok app’s new downloads. Bloomberg also claims that the ban on TikTok was “delayed by a week after Trump gave his initial approval of the proposal.” This ban was supposed to affect another famous Chinese app, WeChat, which also managed to block the ban, or delay it at least, as US Magistrate Judge Laurel Beeler in San Francisco blocked the Commerce Department order.

“US Magistrate Judge Laurel Beeler in San Francisco said in an order that WeChat users who filed a lawsuit “have shown serious questions going to the merits of the First Amendment claim, the balance of hardships tips in the plaintiffs’ favor.”

“Beeler’s preliminary injunction also blocked the Commerce order that would have barred other transactions with WeChat in the United States that could have degraded the site’s usability for current US users. The US Commerce Department did not immediately comment.”

This gives WeChat some time to find another possible solution for the ban, as it may be delayed indefinitely, thanks to the court’s ruling.

Source MacRumors

Via 9to5Mac





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