You just heard the sound of millions of millennials jumping up for joy. The planned ban of the apps, Tik Tok and WeChat has been postponed.
President Donald Trump approved a deal for Oracle and Walmart to acquire stakes in the US operations of popular video app TikTok, postponing a potential ban that was scheduled to go into effect on Sunday.
Oracle will own a 12.5% in TikTok’s global business, which is headquartered in the US, and will provide secure cloud services that satisfy national security concerns about the Chinese-owned app. Retail giant Walmart will also take a stake.
The TikTok deal appears to be a far cry from the Trump administration’s original demand for a full sale of TikTok’s US operations. Oracle becomes a “trusted tech partner,” and will host all US user data, securing “associated computer systems.” Both Oracle and Walmart will take part in a TikTok Global pre-IPO financing round in which they can take up to a 20 percent cumulative stake in the new company, TikTok Global, according to TikTok.
The deal has yet to be finalized, and some of the details remained a bit fuzzy as of Sunday morning. While all parties said the new company would be headquartered in the US and bring 25,000 jobs, the president’s statement that the deal included a $5 billion donation toward US education seemed a surprise to TikTok parent company ByteDance. And of course, the Chinese government must still sign off on any agreement. But for now, the Commerce Department has delayed any TikTok ban until September 27th.