Trump TikTok Deal: Oracle to Acquire App's US Operations
In a surprise move, President Trump announced on September 14 that a deal had been reached for the sale of TikTok's US operations to software company Oracle. The agreement marks a significant shift in the ownership and control of the popular social media app.
According to sources close to the negotiations, Oracle will partner with Walmart to acquire TikTok's US business, which includes its user data and content moderation policies. The deal is expected to be finalized by September 20, pending regulatory approval from the Committee on Foreign Investment in the United States (CFIUS).
"We are pleased that a deal has been reached," said Trump, who had previously threatened to ban TikTok unless it was sold to an American company. "This will ensure that the app's user data and content remain within US jurisdiction."
Oracle CEO Mark Hurd confirmed the agreement, stating: "We believe this partnership will help ensure that TikTok remains a leading platform for creators and users alike." Walmart also released a statement, saying it is "excited to partner with Oracle on this opportunity."
TikTok's global operations are not included in the deal, which will be overseen by ByteDance, the Chinese parent company of the app. According to reports, ByteDance will retain majority ownership of TikTok and maintain control over its global business.
The sale is a result of Trump's executive order issued on August 6, which required TikTok's US operations to be sold within 90 days or face a ban in the country. The move was seen as an attempt to address national security concerns surrounding the app's data collection practices and potential ties to the Chinese government.
TikTok has maintained that it does not share user data with the Chinese government, but the Trump administration had expressed concerns about the company's ownership structure and potential vulnerabilities to cyber threats.
The deal marks a significant shift in the tech industry, as Oracle becomes one of the largest players in the social media space. The partnership between Oracle and Walmart is expected to create a new entity that will oversee TikTok's US operations, with Oracle handling data storage and security, while Walmart focuses on e-commerce integration.
As the deal nears completion, experts are weighing in on its implications for the tech industry and users of the app. "This deal highlights the complexities of global technology ownership and the need for clear regulations," said Mark Warner, a US senator who has been critical of TikTok's data collection practices.
The sale is expected to have far-reaching consequences for social media companies, as governments around the world continue to scrutinize their data collection practices and potential ties to foreign governments. As the tech landscape continues to evolve, one thing is clear: the ownership and control of TikTok will be a key factor in shaping its future direction.
Background: TikTok was launched in China in 2016 under the name Douyin and has since become one of the most popular social media apps globally, with over a billion active users. ByteDance acquired Musical.ly, a rival app, in 2018 and merged it with Douyin to create TikTok.
Additional Perspectives: The deal has been met with mixed reactions from lawmakers and industry experts, with some praising Oracle's involvement as a way to ensure user data security, while others have raised concerns about the potential for censorship and data misuse.
Current Status: The deal is expected to be finalized by September 20, pending regulatory approval. As the partnership between Oracle and Walmart takes shape, users of TikTok can expect changes to the app's content moderation policies and data storage practices.
*Reporting by Bbc.*
