President Donald Trump has approved Oracle's proposed deal to acquire TikTok's U.S. assets after a phone call with Oracle Chairman Larry Ellison and Walmart CEO Doug McMillon.
“I've given my blessing to the deal. If they can do it, that's great. If not, that's fine too, ”Trump told reporters on Saturday, Bloomberg reported. "I approved the deal in concept."
TikTok Global, the new company formed by TikTok as part of the deal between Oracle and Chinese parent company ByteDance, is donating $ 5 billion to an education fund. Trump said this will meet the requirement of payment to the U.S. government for the proposed deal that was the subject of his talks with Ellison and McMillon.
According to Bloomberg, Oracle will have full access to TikTok's source code and will provide updates to ensure there are no backdoors to collect data and spy on the app's 100 million users in the U.S. TikTok Global's IPO is set to be around one year.
Walmart, which was part of a failed offer with partner Microsoft for TikTok's U.S. assets, is still keen to invest and could potentially get a seat on the board of TikTok Global, according to one of the sources.
However, for the transaction to be successful, it must be approved by the Chinese government. According to reports, TikTok in the US would rather close than approve Trump's request for a sale.
TikTok and WeChat will be banned from the US app stores on Sunday. The video sharing app will operate until November 12, unless Oracle's proposed acquisition is completed before that date.