US President Donald Trump said he supports a deal that will allow TikTok to continue to operate in the United States, after threatening to ban the Chinese-owned app in August.
He told reporters at the White House he backs the deal with TikTok owner ByteDance, Oracle and Walmart to create a new company that will assume TikTok’s US operations called TikTok Global.
Trump said the new company will be “totally controlled by Oracle and Walmart”
US shareholders are expected to control 53 per cent of TikTok Global, a person briefed on the matter said, while Chinese investors will hold 36 per cent.
Oracle said it will take a 12.5 per cent stake in TikTok Global.
TikTok said under the deal, Oracle and Walmart will take part in a TikTok Global pre-IPO financing round in which they can take up to a 20 per cent cumulative stake in the company.
The source said the remaining 80 per cent of shares will be distributed to ByteDance investors, a source briefed on the matter said.
US investors currently own about 40 per cent of Bytedance.
Trump offered strong support for the deal he said would create 25,000 US jobs. “I have given the deal my blessing,” Trump said. “I approve the deal in concept.”
About 100 million Americans use TikTok and US officials have expressed concern about user data and the potential for China to access that data.
“The security will be 100 per cent,” Trump told reporters.
Reuters reported on Thursday that TikTok Global will have a majority of American directors, a US chief executive and a security expert on the board.