President Donald Trump said Saturday he had approved a deal allowing Silicon Valley giant Oracle to become the data partner for TikTok to avert a shutdown of the massively popular Chinese-owned video app that Washington has called a security risk.
Trump, who previously said the federal government deserved a cut of the deal for authorizing it, had initially announced the companies would make a "contribution" towards education.
Neither Trump nor the Commerce Department had commented on Beeler's decision at the time of this writing. Walmart agreed to purchase a 7.5% stake in the popular video-sharing app, according to Bloomberg.
TikTok's owner, Beijing-based ByteDance Ltd., would retain roughly 80% ownership of the company. "If they get it done that's great, if they don't that's okay too". "I have given the deal my blessing", Trump said.
TikTok, on Thursday, announced that it was partnering with Oracle and Walmart in order to address the concerns raised by the U.S. authorities and make the platform available to the users in the country.
TikTok Global will likely be headquartered in Texas and will hire "at least" 25,000 people, Trump said.
The Trump administration said that TikTok has until November 12 to resolve the national security concerns it has about the app.
"In our proposal to the US Administration, we've already committed to unprecedented levels of additional transparency and accountability well beyond what other apps are willing to do, including third-party audits, verification of code security, and US government oversight of US data security", a TikTok spokesperson said. "This greatly improved security and guaranteed privacy will enable the continued rapid growth of the TikTok user community to benefit all stakeholders".
"The company has been and will continue to negotiate with the US government and other USA stakeholders to reach a long-term solution", the statement said.
President Trump told reporters Saturday that he has approved the deal between Oracle and TikTok "in concept", and the U.S. Department of Commerce followed up by issuing a statement that stayed Sunday's ban of the app for one week.
The filing, published by CourtListener, reveals the judge considers the USA government "does not meaningfully contest through evidence" the effect of preventing WeChat business transactions on WeChat users in the United States, even when taking into account the "overarching national-security interest".
A California court ruling said it granted "the plaintiffs' motion for a nationwide injunction against the implementation" of the government order.