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September 20, 2020 04:30 am

Last-Minute TikTok Deal Averts Shutdown

"President Donald Trump said Saturday he's given his 'blessing' to a proposed deal that would see the popular video-sharing app TikTok partner with Oracle and Walmart and form a U.S. company," reports CBS News:Mr. Trump has targeted Chinese-owned TikTok for national security and data privacy concerns in the latest flashpoint in the rising tensions between Washington and Beijing. The president's support for a deal comes just a day after the Commerce Department announced restrictions that if put in place could eventually make it nearly impossible for TikTok's legions of younger fans to use the app. Mr. Trump said if completed the deal would create a new company likely to be based in Texas... TikTok said Oracle and Walmart could acquire up to a cumulative 20% stake in the new company in a financing round to be held before an initial public offering of stock, which Walmart said could happen within the next year. Oracle's stake would be 12.5%, and Walmart's would be 7.5%, the companies said in separate statements. The deal will make Oracle responsible for hosting all TikTok's U.S. user data and securing computer systems to ensure U.S. national security requirements are satisfied. Walmart said it will provide its ecommerce, fulfillment, payments and other services to the new company. "We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. administration and settle questions around TikTok's future in the U.S.," TikTok said in a statement. "According to a source close to the matter, ByteDance would keep the rest of the shares," reports a public TV station in Australia. "But since the Chinese company is 40 per cent owned by American investors, TikTok would eventually be majority American-owned." Today America's Treasury Department told CBS that the deal still needs to close with Oracle and Walmart, and those documents and conditions then need to be approved by government regulatory. But because of today's announcement, "the department said Saturday that it will delay the barring of TikTok from U.S. app stores until Sept. 27 at 11:59 p.m."

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