Until the final agreement is signed and approved by the Chinese and American governments, TikTok still has uncertainty in the United States.
TikTok’s agreement in the United States is officially reached!
More importantly, Trump has approved this transaction in principle.
For ByteDance and TikTok, this is an important turning point in its business development in the United States, and it is also a close-to-dust solution since the forced sale of related businesses by the US government in August.
At present, the specific details of the agreement have not been publicly disclosed.
After Trump said he approved the agreement, Bytedance responded
At 7 o’clock in the morning on September 20, Beijing time, Bytedance officially issued a statement:
In order to ensure that 100 million Americans can continue to use TikTok, this highly popular video and content application, meet the regulatory requirements of the US government, and strengthen TikTok’s US business, Bytedance, Oracle, and Walmart have formed a principled consensus on TikTok’s cooperation. The three parties will follow this consensus and reach a cooperation agreement as soon as possible under the laws of the United States and China.
This is the first time that Bytedance officially mentioned TikTok’s partners in an official statement.
In fact, according to CNBC reports, Trump said that he has approved in principle the agreement reached by TikTok, Oracle and Walmart.
In an interview on September 19, Eastern Time, Trump stated:
I expressed my blessing to this agreement-if they can reach an agreement, that would be great, and if they don’t, it’s okay. I approved the transaction conceptually.
So, what kind of agreement is this?
According to Trump’s statement in the interview, through this agreement, a new TikTok company will be established in Texas; according to the company’s statement, it will maintain and expand its headquarters in the United States, while bringing 25,000 jobs in the United States.
Trump said that through the agreement, TikTok will also donate US$5 billion to an education fund through the company and multiple companies to improve global education through technology and online video.
He stated in the interview:
We will set up a very large fund for the education of American youth, which will be very good. This is the contribution I have been asking for.
Oracle and Walmart will jointly hold 20%
In fact, shortly after Trump’s statement was issued, Oracle and Walmart also issued separate statements.
Oracle said that it was selected as TikTok’s secure cloud technology provider and will become a minority shareholder — specifically, Oracle will hold 12.5% of the new TikTok company.
In the press release, Oracle CTO and founder Larry Ellison stated:
TikTok chose Oracle’s next-generation cloud infrastructure because it is faster, more reliable, and more secure than the first-generation technology provided by all other major cloud providers.
And Oracle CEO Safra Catz also stated:
As part of the agreement, TikTok will run on Oracle’s cloud services, Oracle will become a minority shareholder of TikTok Global, and Oracle will rapidly deploy, rapidly expand and operate TikTok systems in its cloud services.
Oracle also talked about its own security and privacy protection in cloud services in the statement, saying that it has the ability to provide TikTok with a highly secure environment and ensure the data privacy of TikTok users in the United States and global users-this will enable TikTok users The sustained and rapid growth of the community benefits all stakeholders.
This shows that Oracle very much hopes to use this agreement to promote its cloud services.
Wal-Mart also stated in a media statement that the company has initially agreed to acquire a 7.5% stake in the new TikTok company. Wal-Mart CEO Doug McMillon will become one of the five directors of the newly established company.
A Walmart spokesperson said in a statement that the new TikTok company will strive to conduct an initial public offering (IPO) in the United States within the next year to bring more ownership to American citizens.
Therefore, from the current situation, through this agreement, Wal-Mart and Oracle will own 20% of the equity.
In addition, according to CNBC citing sources familiar with the matter, under the new agreement, Bytedance will hold 80% of the shares in the new company.
The U.S. government delays the effective time of TikTok download ban
Following Trump’s statement, the US government also officially postponed the effective time of TikTok-related bans.
Leifeng.com noticed that the US Department of Commerce issued a statement on its official website stating:
In light of recent positive developments, Secretary of Commerce Wilbur Ross, under the direction of President Trump, will postpone the ban on identified transactions under Executive Order 13942 (related to the TikTok mobile app) to 2020 11:59 PM on September 27th
This statement means that TikTok will not be affected by the US ban before 11:59 PM on September 27.
This is indeed a big reversal, and it is also good news for Bytedance and TikTok.
Leifeng.com (Public Account: Leifeng.com) previously reported that on September 18, the US Department of Commerce issued a statement in response to the executive order signed by President Trump on August 6, 2020, to maintain national security, and to protect American nationals. On September 20, transactions related to APP WeChat and TikTok were banned (part of TikTok’s ban was postponed to November 12).
For TikTok, the so-called related transactions refer to services used to distribute or maintain updates to TikTok applications and component codes through the US App Store.
Simply put, through the above ban, the United States intends to stop the download and update of TikTok App in the Apple App Store and Google Play App Store on September 20.
But now, after the reversal, the last time TikTok was removed from the app store was changed to 23:59 on September 27-that is, a week of grace.
Of course, it is obvious that the time limit is precisely to give TikTok, Walmart and Oracle some time to successfully reach an agreement acceptable to the Chinese and American governments.
After all, $5 billion is also a good price.
TikTok has found life, but the dust has yet to settle
Even in US time, it is almost September 20th.
With the US government’s ban on paper coming into effect, for WeChat, as a senior US government official said in an interview with CNBC before-it has come to an end in the United States.
But with Trump’s statement, coupled with TikTok, Wal-Mart, and Oracle’s statements, TikTok has found some chances of survival-good news for Bytedance.
However, before the final agreement is signed and approved by the Chinese and American governments, TikTok remains uncertain in the United States.
Only time will let the dust settle.
Trump agrees to TikTok deal with Oracle and Walmart, allowing app's U.S. operations to continue
President Donald Trump said Saturday he has approved a deal in principle in which Oracle and Walmart will partner with…
TikTok deal still has a chance but WeChat 'dead' in the U.S., says senior administration official
Despite a Commerce Department announcement of a ban on transactions, a deal that would allow TikTok to remain operating…
Oracle Chosen As TikTok's Secure Cloud Provider
REDWOOD SHORES, Calif., Sept. 19, 2020 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) announced today that it was…
Statement on Delayed Prohibitions Related to TikTok
In light of recent positive developments, Secretary of Commerce Wilbur Ross, at the direction of President Trump, will…