Although the Chinese giant ByteDance would keep a large part of the capital of the fledgling firm, North American investors would get 20% of the company
September 20, 2020 Share on FacebookShare Share on TwitterTweet Share on WhatsAppShare
The preliminary agreement for the social network TikTok to continue operating in the United States translates into the creation of a new company called TikTok Global in which Oracle and Walmart will acquire a 20 percent stake, according to a joint statement by the two US companies. .
According to the agreement, TikTok will create a new company called TikTok Global, which is the one that will provide TikTok services to users in the United States and “to the majority of users in the rest of the world,” at the same time that Oracle becomes TikTok's cloud provider.
The agreement also stipulates that TikTok Global “will be majority owned by US investors, including Oracle and Walmart,” which will be an independent US company, based in the US and with four Americans of the five members of the Board of Directors.
The joint statement disclosed in the accounts of Oracle and Walmart
The US Government announced this Saturday that it will delay for a week the application of measures against the Chinese social network TikTok, which were to enter into force this Sunday, after US President Donald Trump gave his “blessing” to an agreement preliminary so that it can operate in the country.
Trump highlighted that Oracle and Walmart would partner with TikTok, ” the security would be 100%, they will be using separate clouds and very powerful security and they will be making a contribution of 5 billion dollars in education .”
According to the statement from Walmart and Oracle, TikTok Global will create more than 25,000 new jobs in the United States and will pay more than 5,000 million dollars in taxes to the North American Treasury .
TikTok Global, together with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue will create an online educational initiative for American children, from basic reading. and from math to science, history, and computer engineering.
Regarding security, the agreement establishes that ” all TikTok technology will be in the possession of TikTok Global and will comply with US privacy laws and regulations, ” security that Trump also referred to when talking about the agreement.
EFE / EPA / HAYOUNG JEON / Archive
The application, which allows you to broadcast short videos, often musical or humorous, has about 100 million users in the United States . For them, their data will be 100% secured, as they will be moved to Oracle's second-generation cloud data centers, “the safest in the world.”
According to the statement, ” this unique technology eliminates the risk of foreign governments spying on US users or trying to influence them with disinformation .”
“In light of recent positive developments, US Commerce Secretary Wilbur Ross, under the leadership of President Trump, will delay the ban on transactions identified in Executive Order 13942 , related to the mobile application TikTok, which would have entered in effect on Sunday, September 20, 2020, until September 27, 2020, at 11:59 pm, ”this Department said in a statement.
“We'll see if it happens or not, but conceptually I think it's a great deal for the US,” Trump said.
In a statement posted on its website, TikTok notes that the joint proposal with Oracle and Walmart “will resolve the security concerns of the US Administration”, as well as “doubts about the future of TikTok” in that country.
In the statement, TikTok states that “Oracle will become our trusted technology provider” and that it will be “responsible for hosting all US user data” as well as ensuring that “US national security requirements are fully met. ”.
(With information from EFE and AFP)