The ban is the latest in the Trump administration's efforts to counter Beijing's actions to undermine US institutions and public security.
According to reports, Trump has approved TikTok's deal that was made with Oracle. But ByteDance said the $5 billion discussed was the projected amount of federal income taxes TikTok Global would pay over the next several years.
The final valuation had not been set as the parties worked out the equity structure and measures for data security, the person said. Terms are still in flux and the proposed valuation could still change. Beijing also has yet to approve the deal, though regulators are said to favor any transaction in which ByteDance maintains control of its valuable recommendation algorithms and other proprietary technology. President Donald Trump demanded the sale of the service in August, declaring in executive orders that the popular video-sharing app is a national security threat. "I approved the deal in concept", Trump told reporters, saying, "it is a great deal for America".
While ByteDance said they will get the remaining stake, Oracle said it will be divided among American investors. "If they don't, that's fine too".
A Walmart spokesman on Thursday declined to comment further, and Oracle did not immediately respond to inquiries from DailyMail.com on Thursday morning. Snap Inc., for context, trades at a $35 billion valuation.
Oracle's leadership has strong ties to the Trump administration, another factor that could have played a role in Trump's approval of the deal.
"We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok's American users and users throughout the world", said Oracle CEO Safra Catz. This includes four venture-capital firms.
Walmart Inc., which had previously partnered with Microsoft Corp.to make an outright bid for TikTok's US business, remains interested in investing as well, and could also end up with a seat on the board, according to one of the people.
Abbott tweeted again Tuesday, writing, "TikTok deal will bring 25,000 jobs to Texas". It will need to hire thousands of content moderators, engineers, and marketing staff that were previously located in China and around the world.
Under the terms of the proposal, Oracle would have a 20 percent stake in TikTok's new US entity, as well as access to all source code, sources told CNBC host David Faber.
After the recent contradicting claims of the ownership structure in the new entity 'TikTok Global, ' I am not even surprised by the latest roadblock that has emerged for this deal.
On Friday, the U.S. Department of Commerce announced an order to delay TikTok's U.S. app store ban by a week until September 27.
That body would be chaired by an American data-security expert who would be the primary contact with the Committee on Foreign Investment in the US, which would oversee any issues of concern to the USA government.