In the recent times, TikTok has been a subject of multiple controversies. This includes the threats of ban from the American government if it does not sell its U.S. business to an American company. Microsoft and Oracle were the most serious companies in discussions with TikTok for a possible deal. But, a few days ago, Microsoft confirmed that it had failed to reach a positive conclusion with TikTok. Oracle on the other hand confirmed that it has an agreement with TikTok which is subject to the U.S. governmentâ€™s approval. The deal does not involve selling TikTok and no royalty will be paid to the U.S. government.
Now, recent reports is pointing out that the U.S. President has â€œin principleâ€ agreed to the solution received by the U.S. government regarding TikTok. The program does not involve technology and algorithm transfer. While leaving the White House for a campaign rally in Fayetteville, New Carolina, Trump told reporters that;
â€œI have already expressed my blessing to this dealâ€¦I agreed to this deal in principle.â€
Recall that the Tiktokâ€™s ban and its removal from the PlayStore were supposed to take effect at the end of today. However, it appears that this acceptance â€œin principleâ€ will allow US users to continue to use the Chinese short video app. But then again, there is still a need for a final and formal agreement of all parties.
A Way Of Escape Finally Available For TikTOk
No one thought that Zhang Yiming (ByteDance CEO) and his team have a third way out. We all imagined that it will either be sell or get banned. The current deal involvesÂ Bytedance, Oracle, and Wal-Mart. The three parties will work together to meet the requirements of both the U.S. and China.
TikTokâ€™s headquarters will remain in the United States, and Oracle will become TikTokâ€™s partner in data security compliance. The latter will provide cloud architecture services for U.S. users. TikTok will not transfer its technology or algorithm to Oracle.
According to TikTok, it will create over 25,000 jobs in the next few years to support rapid business development. The company claims that it will not just â€œmake moneyâ€, it will also integrate into American society.
TikTok, Oracle, And Wal-Mart Now Working Together
TikTok will start a new round of financing of no more than 20% in the same period. Oracle and Walmart will potential investors with first-hand rights. The two companies will invest a total of 100 billion yuan ($12.5 billion) in this round of financing. After the completion of this round of financing, TikTokâ€™s post-investment valuation will reach nearly 500 billion yuan ($62.5 billion). At the same time, Bytedance will continue to control TikTok. However, Oracle and Wal-Mart will be its â€œlocal partnersâ€ in the US market.
Oracleâ€™s founder and chief technology officer, Larry Ellison, said:
â€œOracle Cloud Infrastructure will empower TikTokâ€™s next phase of development. It will also ensure that the companyâ€™s business adheres to the most stringent security standards.â€
TikTok, Oracle, and Walmart will join hands to promote the development of the next global internet giant. Doug McMillon, CEO of Walmart said;
â€œWalmart is very pleased to work with Bytedance and Oracle to build TikTok into a more popular service application in the United States. We look forward to the final completion of the transaction. We want to serve our customers and create more jobs.â€