Tik Tok had been dealing with the bans on its app from countries like the USA and India, where it had the most fan following and number of users. The tech giant Oracle leads a consortium group, and on Thursday, it sent a proposal through its consortium group to take the responsibility of TikTok’s US operations. The proposal also stated that the company would deeply address the concern, which became the basis of banning the app countrywide. The White House, however, said that a response would be shared within 36 hours.
In response to the deal, President Trump on Saturday said that he had approved the proposal and agreed to the deal by Oracle-lead group. TikTok was waiting too eagerly for this statement; hence didn’t wait for the final sign-off before making an official announcement.
The big tech, i.e., Oracle, will now be the ‘trusted technology provider’ for TikTok and take care of all the US users’ data. The main goal will be to ensure that the data is secured efficiently and has no link/not shared with the Chinese government or TikTok’s parent company ByteDance. TikTok will, however, still be under the ownership of ByteDance, but would have an entirely separate board with high-level security in the US.
Oracle will have 12.5% stakes of the company and will be the secure cloud provider for TikTok. Walmart is also a part of the deal, which will have 8% stakes but in the newly created ‘TikTok Global,’ which will operate separately from its owner company ByteDance however, the license will be provided by the Chinese government in 2021.
Donald Trump has agreed to the deal by saying that $5 billion shall be contributed in order to add to educational funds of the country. There are still several unanswered questions that will all be unfolded with time.
The following video clip was posted on Twitter by interim CEO of TikTok, Vanessa Pappas.