However, hours before the ban was set to come into effect, US Magistrate Judge Laurel Beeler of the Northern California District Court issued an injunction on Sunday blocking the removal, saying that the move raised "serious questions" about free speech. The deal has also been approved by President Donald Trump, reports Bloomberg.
Trump said TikTok will be owned by a new company, TikTok Global, and will be headquartered in the United States. It would be run by a majority of American directors and would also have a U.S. chief executive and a security expert on the board. That company would have a majority of American directors, a U.S. chief executive and a security expert on the board.
"It won't be unusual to have interaction between the two companies on a number of different issues, including algorithmic operations, so that could stretch into personal data pretty easily", Kelly said in an interview. The Trump administration announced details of the proposed ban Friday.
The President's stamp of approval bodes extremely well for the deal, however, a formal review and official approval are still pending.
In her order, Beller said while there is considerable evidence that some Chinese technologies do pose a legitimate national security threat to the United States, "the specific evidence about WeChat is modest", the judge wrote. "However, in new research we show that files and images shared by WeChat users with accounts outside of China are subject to political surveillance, and this content is used to train and build up the censorship system that WeChat uses to censor China-registered users", researchers from the university's Munk School of Global Affairs & Public Policy wrote. Oracle executives have close ties to Trump. Retail giant Walmart said it would take a 7.5% stake. Larry Ellison, Oracle's co-founder and chief technology officer, is also a friend and supporter of President Trump.
TikTok has also gone on record, confirming the emergence of TikTok Global, as well as discussions with Walmart on a "commercial partnership".
In comments reported by multiple media outlets, Trump said on Saturday, "I have given the [Oracle-TikTok] deal my blessing-if they get it done that's great, if they don't that's OK too".
But the Trump administration has labeled TikTok, along with Chinese messaging app WeChat, as national security risks, alleging that the platforms capture vast swaths of data from USA citizens for transfer to the Chinese government.
Walmart said it will provide its ecommerce, fulfillment, payments and other services to the new company. "Our community of 100 million USA users love TikTok because it's a home for entertainment, self-expression, and connection, and we're committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform". The TikTok Global deal does not include the app's China twin, Douyin, which has become an enormous hit in its own right.