In a sur- staff, their dependents prise move, Oracle and Walmart have come together to save TikTok from the ban, forming a new company called TikTok Global which will be based in the US. President Donald Trump said he has given the deal his ‘blessing.’
San Francisco:
Trump has announced that the China-based ByteDance, the parent company of TikTok, has got tentative approval for an agreement with the US government to resolve the outstanding issues, which will now include Oracle and Walmart together investing to acquire 20 per cent of the newly-formed TikTok Global business.
Oracle announced it was chosen as TikTok’s secure cloud provider and will become a minority investor with a 12.5 pc stake. Walmart said it has tentatively agreed to a purchase 7.5 per cent stake in TikTok and its CEO Doug McMillon would serve as one of the five board members of the newly-created firm, ByteDance which will own the remaining 80 per cent of TikTok.
“TikTok Global will be majority owned by American investors, including Oracle and Walmart. TikTok Global will be an independent American company, headquartered in the US, with four Americans out of the five member Board of Directors,” Walmart and Oracle said in a joint statement.
Talking to reporters, Trump said: “I have given the deal my blessing. I approve the deal in concept. It will have nothing to do with China, it’ll be totally secure, that’ll be part of the deal. The security will be 100 per cent. They’ll be using separate clouds and a lot of very, very powerful security”. All the TikTok technology will be in possession of TikTok Global, and comply with US laws and privacy regulations.
“TikTok Global will create more than 25,000 new jobs in the US and will pay more than $5 billion in new tax dollars to the US Treasury.”
FINER DETAILS OF DEAL IN MAKING
- Mandates creation of a new American company – incorporated in Texas
- Prospect of 25,000 new jobs
- TikTok to give $5 billion to fund education of American youths
- A brand new company with nothing to do with any outside land, any outside country
- It will have nothing to do with China
- Totally secure
- Technology superior to anything in world
- Billions of dollars of taxes will be paid every year
- TikTok now planning a pre-IPO, with Oracle and Walmart expected to invest around $12.5 billion
- Total valuation of TikTok at $62.5 billion
- Planned investment would see Oracle and Walmart holding 12.5 per cent and 7.5 per cent of shares respectively
- Parent company ByteDance to own 80 per cent of TikTok, which debuted in the US in 2018
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