10.9 C
New York

Trump Says He’s Approved Oracle Deal For U.S. TikTok

Must read

Tommie Lee Defends Her ‘Natural’ Body, Suggests She’s By no means Experienced Operation Other than Lipo Next Criticism Of Her Hot Photos

If you view the “Love and Hip Hop” franchise, then you know Tommie Lee is actually not a single to back again down from...

Alexandria Ocasio-Cortez is heavily favored to win her reelection race. Her challenger has still raised $10 million because Republicans are desperate to beat her....

*display:inline-block;vertical-align:middle.t9oUK2WY0d28lhLAh3N5qmargin-top:-23px._2KqgQ5WzoQRJqjjoznu22odisplay:inline-block;-ms-flex-negative:0;flex-shrink:0;position:relative._2D7eYuDY6cYGtybECmsxvE-ms-flex:1 1 auto;flex:1 1 auto;overflow:hidden;text-overflow:ellipsis._2D7eYuDY6cYGtybECmsxvE:hovertext-decoration:underline._19bCWnxeTjqzBElWZfIlJbfont-size:16px;font-weight:500;line-height:20px;display:inline-block._2TC7AdkcuxFIFKRO_VWis8margin-left:10px;margin-top:30px._2TC7AdkcuxFIFKRO_VWis8._35WVFxUni5zeFkPk7O4iiBmargin-top:35px._7kAMkb9SAVF8xJ3L53gcWdisplay:-ms-flexbox;display:flex;margin-bottom:8px._7kAMkb9SAVF8xJ3L53gcW>*-ms-flex:auto;flex:auto._1LAmcxBaaqShJsi8RNT-Vppadding:0 2px 0 4px;vertical-align:middle._3_HlHJ56dAfStT19Jgl1bF,.nEdqRRzLEN43xauwtgTmjpadding-right:4px._3_HlHJ56dAfStT19Jgl1bFpadding-left:16px._2QZ7T4uAFMs_N83BZcN-Emfont-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:18px;display:-ms-flexbox;display:flex;-ms-flex-flow:row nowrap;flex-flow:row nowrap._19sQCxYe2NApNbYNX5P5-Lcursor:default;height:16px;margin-right:8px;width:16px._3XFx6CfPlg-4Usgxm0gK8Rfont-size:16px;font-weight:500;line-height:20px._34InTQ51PAhJivuc_InKjJcolor:var(--newCommunityTheme-actionIcon)._29_mu5qI8E1fq6Uq5koje8font-size:12px;font-weight:500;line-height:16px;display:inline-block;word-break:break-word._2BY2-wxSbNFYqAy98jWyTCmargin-top:10px._3sGbDVmLJd_8OV8Kfl7dVvfont-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:21px;margin-top:8px;word-wrap:break-word._1qiHDKK74j6hUNxM0p9ZIpmargin-top:12px.isNotInButtons2020 ._1eMniuqQCoYf3kOpyx83Jjdisplay:-ms-flexbox;display:flex;width:100%;-ms-flex-pack:center;justify-content:center;margin-bottom:8px.isNotInButtons2020 ._326PJFFRv8chYfOlaEYmGtdisplay:-ms-flexbox;display:flex.isNotInButtons2020 .Jy6FIGP1NvWbVjQZN7FHA,.isNotInButtons2020 ._326PJFFRv8chYfOlaEYmGtwidth:100%;font-size:14px;font-weight:700;letter-spacing:.5px;line-height:32px;text-transform:uppercase;-ms-flex-pack:center;justify-content:center;padding:0 16px.isNotInButtons2020 .Jy6FIGP1NvWbVjQZN7FHAdisplay:block;margin-top:11px.isNotInButtons2020 ._1cDoUuVvel5B1n5wa3K507display:block;padding:0 16px;width:100%;font-size:14px;font-weight:700;letter-spacing:.5px;line-height:32px;text-transform:uppercase;-ms-flex-pack:center;justify-content:center;margin-top:11px;text-transform:unset.isInButtons2020 .Jy6FIGP1NvWbVjQZN7FHA,.isInButtons2020 ._326PJFFRv8chYfOlaEYmGt,.isInButtons2020 ._1eMniuqQCoYf3kOpyx83Jj,.isInButtons2020 ._1cDoUuVvel5B1n5wa3K507-ms-flex-pack:center;justify-content:center;margin-top:12px;width:100%._2_w8DCFR-DCxgxlP1SGNq5margin-right:4px;vertical-align:middle._1aS-wQ7rpbcxKT0d5kjrbhborder-radius:4px;display:inline-block;padding:4px._2cn386lOe1A_DTmBUA-qSMborder-top:1px...

(Bloomberg) — Donald Trump approved Oracle Corp.’s bid for the U.S. operations of TikTok “in concept,” a deal forced by the president’s orders last month declaring the popular video-sharing app a national security threat.

“I have given the deal my blessing. If they get it done that’s great. If they don’t, that’s OK too, ” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, N.C. “I approved the deal in concept.”

The new company, which will be called TikTok Global, has agreed to donate $5 billion to an education fund, which Trump said would satisfy his demand that the government receive a payment from the deal. “They’re going to be setting up a very large fund,” he said. “That’s their contribution that I’ve been asking for.”

Under terms of the deal, Oracle Corp. and Walmart Inc. will control 20% of the new TikTok Global, according to a person familiar with the matter. Sequoia Capital and General Atlantic, already investors in TikTok’s Chinese owner ByteDance Ltd., are also expected to take stakes in the new company, the person said.

TikTok said in a statement that it was “pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S.”

The company confirmed Oracle will host all its U.S. data and secure its computer systems. TikTok said it is working with Walmart on a commercial partnership and it, along with Oracle, will take part in a TikTok Global pre-IPO financing round in which they can take as much as a 20% cumulative stake in the company.

TikTok Global will likely be headquartered in Texas and will hire “at least” 25,000 people, Trump said. TikTok will need to hire thousands of content moderators, engineers, and marketing staff that were previously located in China and around the world.

To sweeten the deal for Trump, TikTok promised to hire 25,000 employees in the U.S., an additional 15,000 jobs more than the 10,000 positions the company already pledged to fill earlier this year. It’s unclear if there’s a timeline to achieve that target, or any guarantees it will follow through. Facebook Inc., the largest U.S. social media company, employed about 45,000 people in 2019, while Twitter Inc. employed only 4,900, according to data compiled by Bloomberg.

Trump is ramping up pressure on Chinese-owned apps in the weeks before the Nov. 3 presidential elections, citing national security concerns about the data U.S. citizens provide to them and the potential for Beijing to use them for spying. The president is trailing his opponent Joe Biden in polls and has sought to portray himself as tougher on Beijing than the Democrat.

While the Chinese government must now sign off on the transaction for it to go forward, as of earlier this week, ByteDance was growing increasingly confident that the proposal would pass muster with Chinese regulators, people familiar with the matter told Bloomberg.

Under the terms of the agreement reached early in the week, ByteDance would retain a majority of TikTok’s assets and control over the algorithm, with Oracle and other U.S. investors taking minority stakes.

Trump seemed to contradict that on Saturday. “It will have nothing to do with China, it’ll be totally secure, that’ll be part of the deal,” he said. “All of the control is Walmart and Oracle, two great American companies.”

Trump spoke with Oracle Chairman Larry Ellison and Walmart Chief Executive Officer Doug McMillon on Friday, telling them he still expected the U.S. government to receive a cash payment as part of the transaction, according to people familiar with the matter. They agreed to the educational donation as a way to satisfy Trump’s demand, one of the people said.

The new U.S. company intends to hold an initial public offering in about a year, according to people familiar with the matter. TikTok plans to use the proceeds from the listing for the $5 billion educational grant, one of the people said.

Oracle will get full access to review TikTok’s source code and updates to make sure there are no back doors used by the company’s Chinese parent to gather data or to spy on the video-sharing app’s 100 million American users, according to people familiar with the matter.

The deal came together last weekend, the result of high-level negotiations between ByteDance, Oracle and top Trump administration officials after ByteDance rejected a bid from Microsoft Corp. and Walmart to buy the U.S. TikTok service outright.

Beijing has signaled it would greenlight a deal as long as ByteDance doesn’t have to transfer the artificial intelligence algorithms that drive TikTok’s service, Bloomberg has reported.

(Updates with Oracle-Walmart ownership stake in sixth paragraph.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

Source link

Some Exciting Offer For You

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

+ 87 = 93

Latest article

Tommie Lee Defends Her ‘Natural’ Body, Suggests She’s By no means Experienced Operation Other than Lipo Next Criticism Of Her Hot Photos

If you view the “Love and Hip Hop” franchise, then you know Tommie Lee is actually not a single to back again down from...

Alexandria Ocasio-Cortez is heavily favored to win her reelection race. Her challenger has still raised $10 million because Republicans are desperate to beat her....

*display:inline-block;vertical-align:middle.t9oUK2WY0d28lhLAh3N5qmargin-top:-23px._2KqgQ5WzoQRJqjjoznu22odisplay:inline-block;-ms-flex-negative:0;flex-shrink:0;position:relative._2D7eYuDY6cYGtybECmsxvE-ms-flex:1 1 auto;flex:1 1 auto;overflow:hidden;text-overflow:ellipsis._2D7eYuDY6cYGtybECmsxvE:hovertext-decoration:underline._19bCWnxeTjqzBElWZfIlJbfont-size:16px;font-weight:500;line-height:20px;display:inline-block._2TC7AdkcuxFIFKRO_VWis8margin-left:10px;margin-top:30px._2TC7AdkcuxFIFKRO_VWis8._35WVFxUni5zeFkPk7O4iiBmargin-top:35px._7kAMkb9SAVF8xJ3L53gcWdisplay:-ms-flexbox;display:flex;margin-bottom:8px._7kAMkb9SAVF8xJ3L53gcW>*-ms-flex:auto;flex:auto._1LAmcxBaaqShJsi8RNT-Vppadding:0 2px 0 4px;vertical-align:middle._3_HlHJ56dAfStT19Jgl1bF,.nEdqRRzLEN43xauwtgTmjpadding-right:4px._3_HlHJ56dAfStT19Jgl1bFpadding-left:16px._2QZ7T4uAFMs_N83BZcN-Emfont-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:18px;display:-ms-flexbox;display:flex;-ms-flex-flow:row nowrap;flex-flow:row nowrap._19sQCxYe2NApNbYNX5P5-Lcursor:default;height:16px;margin-right:8px;width:16px._3XFx6CfPlg-4Usgxm0gK8Rfont-size:16px;font-weight:500;line-height:20px._34InTQ51PAhJivuc_InKjJcolor:var(--newCommunityTheme-actionIcon)._29_mu5qI8E1fq6Uq5koje8font-size:12px;font-weight:500;line-height:16px;display:inline-block;word-break:break-word._2BY2-wxSbNFYqAy98jWyTCmargin-top:10px._3sGbDVmLJd_8OV8Kfl7dVvfont-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:21px;margin-top:8px;word-wrap:break-word._1qiHDKK74j6hUNxM0p9ZIpmargin-top:12px.isNotInButtons2020 ._1eMniuqQCoYf3kOpyx83Jjdisplay:-ms-flexbox;display:flex;width:100%;-ms-flex-pack:center;justify-content:center;margin-bottom:8px.isNotInButtons2020 ._326PJFFRv8chYfOlaEYmGtdisplay:-ms-flexbox;display:flex.isNotInButtons2020 .Jy6FIGP1NvWbVjQZN7FHA,.isNotInButtons2020 ._326PJFFRv8chYfOlaEYmGtwidth:100%;font-size:14px;font-weight:700;letter-spacing:.5px;line-height:32px;text-transform:uppercase;-ms-flex-pack:center;justify-content:center;padding:0 16px.isNotInButtons2020 .Jy6FIGP1NvWbVjQZN7FHAdisplay:block;margin-top:11px.isNotInButtons2020 ._1cDoUuVvel5B1n5wa3K507display:block;padding:0 16px;width:100%;font-size:14px;font-weight:700;letter-spacing:.5px;line-height:32px;text-transform:uppercase;-ms-flex-pack:center;justify-content:center;margin-top:11px;text-transform:unset.isInButtons2020 .Jy6FIGP1NvWbVjQZN7FHA,.isInButtons2020 ._326PJFFRv8chYfOlaEYmGt,.isInButtons2020 ._1eMniuqQCoYf3kOpyx83Jj,.isInButtons2020 ._1cDoUuVvel5B1n5wa3K507-ms-flex-pack:center;justify-content:center;margin-top:12px;width:100%._2_w8DCFR-DCxgxlP1SGNq5margin-right:4px;vertical-align:middle._1aS-wQ7rpbcxKT0d5kjrbhborder-radius:4px;display:inline-block;padding:4px._2cn386lOe1A_DTmBUA-qSMborder-top:1px...

Italy approves partial lockdown; Spain announces national curfew

ROME | MADRID: Italy introduced the strongest virus restrictions since the end of a national lockdown in May, and Spain will impose a national...