President Donald Trump has signed off on a deal that makes Oracle and Walmart partners in the TikTok deal.
Oracle and Walmart will become partners with TikTok to create a U.S.-based company, sealing negotiations that fostered debate over national security challenges in the United States.
“I have given the deal my blessing, if they get it done that’s okay too, if they don’t that’s fine too,” Trump told reporters at the White House on Saturday, according to reports.
The deal prevents TikTok from sharing U.S. data with the Chinese government.
“We are pleased 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 U.S.,” a TikTok spokesperson wrote in an
email to Search & Performance Marketing Daily.
As part of this proposal, Oracle will become TikTok’s trusted technology provider, responsible for hosting all U.S. user data and securing associated computer systems to ensure national security requirements are fully satisfied.
“We are currently working with Walmart on a commercial partnership as well,” wrote the spokesperson. "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 deal also maintains and expands TikTok Global's headquarters in the U.S., while bringing 25,000 jobs across the country.
The new company, likely headquartered in Texas, will be called TikTok Global.
Trump reportedly said the combined company has agreed to donate $5 billion to an educational fund based in Texas, which would satisfy the president’s request for a contribution to the government for helping to arrange the deal.
Bloomberg reports that the Chinese government must now sign off on the transaction for it to go forward.