Donald Trump says he has approved a deal where 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 of 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."
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
The president said the new company will be headquartered in Texas, hire up to 25,000 people, and contribute $ 5 billion to U.S. education.
Oracle announced on Saturday that it would take over a 12.5% 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.
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're going to 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 US executive director and a security expert on the board.
According to a Reuters source, Oracle has agreed to hold a 20 percent stake in the company.
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 will be "fully 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 operations 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 needs to 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.
The terms of the agreed deal were not published.
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 lip-sync themselves film 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