• By The Financial District

TRUMP RETREATS, OKS DEAL TO KEEP TIK TOK OPERATING IN US

President Donald Trump said he’s given his “blessing” to a proposed deal that would see the popular video-sharing app TikTok partner with Oracle and Walmart and form a US company. 

Trump has targeted Chinese-owned TikTok for national security and data privacy concerns in the latest flashpoint in the rising tensions between Washington and Beijing. The president’s support for a deal, which constitutes meddling in corporate affairs, comes just a day after the Commerce Department announced restrictions that if put in place could eventually make it nearly impossible for TikTok’s legions of younger fans to use the app, Stan Choe reported for the Associated Press (AP.)


Trump said if completed the deal would create a new company likely to be based in Texas. “I have given the deal my blessing,” he said. “If they get it done, that’s great. If they don’t, that’s OK, too.” He bragged the new company will be hiring at least 25,000 people and making a $5 billion contribution to a fund dedicated to education for Americans. “That’s their contribution that I’ve been asking for,” he said.


TikTok said Oracle and Walmart could acquire up to a cumulative 20% stake in the new company in a financing round to be held before an initial public offering of stock, which Walmart said could happen within the next year. Oracle’s stake would be 12.5%, and Walmart’s would be 7.5%, the companies said in separate statements.



The Financial District would like to learn more from its audience. Can you please give us feedback on this article you just read. Click Here to participate in our online survey.