Donald Trump says he has approved a deal in which Oracle will lead a coalition to buy TikTok from Chinese company ByteDance.
Last month, Trump ordered ByteDance to sell TikTok or it would close in the US.
Approximately 100 million Americans use TikTok, and US officials have raised concerns about user data and the potential for China to access that data.
On Saturday, just before leaving for a rally in North Carolina, the president said he had given the go-ahead for an offer from California-based Oracle, made in partnership with Walmart.
"I have given my blessing to the deal," he said, adding that the deal "will have nothing to do with China."
He continued, "It will be perfectly safe this is part of the business."
At the rally, the president said the new company will be headquartered in Texas and employ up to 25,000 people.
He also said TikTok would pay $ 5 billion for education about the "real history of our country".
Donald Trump announced on Saturday that he had approved a deal for Oracle to purchase TikTok
The Chinese government must now approve the Oracle-led deal for it to proceed
It is not known what this fund will be used for, but Trump previously railed against the New York Times Magazine's "1619 Project," which seeks to reshape US history regarding the consequences of slavery.
Oracle announced on Saturday that it would take over a 12.5 percent stake in the new company TikTok Global.
Larry Ellison, Oracle's chief technology officer, said TikTok was partially convinced of the fact that Zoom had recently moved much of its video conferencing infrastructure to Oracle.
He described Oracle's technology as "much faster, more reliable, and more secure" than its competitors.
TikTok said in a statement, "We are pleased that the proposal from TikTok, Oracle and Walmart will resolve US government security concerns and clarify questions about the future of TikTok in the US."
TikTok said both Oracle and Walmart will participate in a funding round ahead of an IPO, in which they can acquire up to 20 percent of the accumulated shares in the company.
The agreement makes Oracle responsible for hosting all of TikTok's US user data and backing up computer systems to ensure that US national security requirements are met.
TikTok said it was also working on a "commercial partnership" with Walmart but did not reveal any further details.
It was unclear how much of ByteDance's stake would keep and who would own the rest of the company.
The Chinese government must now sign the transaction in order for it to proceed.
TikTok confirmed Monday that it had submitted Oracle's proposal to the US government for approval.
On Thursday, Trump said his administration had spoken to Walmart and Oracle about TikTok, but at the time there was no agreed deal for the Chinese-owned short video app.
"We're making a decision," he said on Thursday.
TikTok is currently owned by Beijing-based ByteDance, and Trump ordered the sale last month, or he said he would close it in the US.
& # 39; We spoke to Walmart, Oracle, today. I think Microsoft is still involved.
“We'll make a decision, but not much has changed. We will make a decision soon. & # 39;
ByteDance had tried to sign a deal with the White House that would prevent a US ban on TikTok that Trump had threatened to kick off as early as next week.
Reuters reported Thursday that the new company, called TikTok Global, will have a majority of American directors, a U.S. executive director, and a security expert on the board.
Doug McMillon, CEO of Walmart, will also get a seat on the board of directors of TikTok Global, the source said.
Trump said the new TikTok company would be "completely controlled by Oracle and Walmart".
Chinese President Xi Jinping said Thursday that "key core technology" must be retained
Concern had increased that a deal would allow China to retain control of the company.
Sources on Thursday announced that TikTok would become a global company headquartered in America, with Oracle taking responsibility for US operations and user data and ByteDance retaining the majority.
Officially, Oracle has only stated that it is part of a proposal by ByteDance to the US Treasury Department to serve the Chinese company as a "trusted technology provider" without giving further details on the terms of the contract.
A full sale of TikTok's activities or technology was not included in ByteDance's proposal to the United States, Chinese state media reported Thursday, citing a separate statement from the company.
Chinese authorities have announced they will not allow ByteDance to sell the algorithms used by TikTok, which are believed to be a major part of the app's value.
While a deal is being negotiated, Chinese President Xi Jinping said on Thursday, "Innovation is the most important quality of corporate governance, and we must also overcome obstacles to do so in the future."
"The key technology must be held firmly in our hands," he added, according to China's official Xinhua news agency.
Trump had repeatedly stressed that he was firmly against a deal that would allow ByteDance to retain majority control and cited national security concerns regarding user data.
What is TikTok?
TikTok is a Chinese social media app that allows users to live stream, create short videos and music videos, as well as gifs with a variety of functions.
TikTok's slogan is "Every Second Counts".
It was the most downloaded app in the US in 2018 and the fourth most downloaded app in the world in 2018, ahead of Instagram and Snapchat.
In 2019 it became the second most downloaded app in the world after Whatsapp.
TikTok is known as Douyin in China, where it was introduced in 2016 and made available worldwide in 2017.
Douyin is still the version of the app used in China, which can be downloaded separately from TikTok.
Most kids use the app to film themselves lip-sync and draw hits.
It offers users a range of colorful changing and editing tools including overlaying music, sound, animated stickers, filters, and augmented reality (AR) for creating short videos.
The Beijing-based social network has more than 500 million active users and the company is now valued at more than $ 75 billion (£ 58 billion).
(tagsToTranslate) Dailymail (t) News (t) China (t) Donald Trump (t) TikTok (t) Walmart