Its activity in the US will continue on TikTok, with Donald Trump folding – despite the ban on national security grounds. Specifically, the American president approved a plan involving Oracle and Walmart.
“I gave my approval to the agreement. If they consolidate it, the better. If that doesn’t happen, no problem,” the Republican president said before leaving for a campaign rally in North Carolina.
TikTok, a subsidiary of Chinese group ByteDance, confirmed shortly afterwards that it had prepared a plan to create a new company involving Oracle as a technology partner in the US and Walmart as a trading partner. It will be called TikTok Global, will be based in the US and will hire 25,000 people, Oracle and Walmart said in separate announcements.
Oracle will be able to buy back 12.5% of TikTok’s shares and Walmart 7.5% before its future listing on the New York Stock Exchange is scheduled to take place within up to a year.
ByteDance will retain the remaining capital, a source close to the case told AFP. However, as 40% of American investors will participate in the Chinese company’s share capital, the majority of its shares will eventually come under the control of AMERICAN companies.
“We are delighted that the proposal by TikTok, Oracle and Walmart resolves the security problems raised by the U.S. government and regulates issues related to TikTok’s future in the U.S.,” an app spokesperson commented.
If this agreement is consolidated it may allow one of the many conflicts that exist between Washington and Beijing to be resolved, particularly on the technological front.