President Trump said he has agreed in concept to a deal under which Chinese-owned video-sharing app TikTok will partner with Oracle and Walmart to become a U.S.-based company, capping negotiations that have stirred debate over national security and the future of the internet.
The Commerce Department would delay a ban on U.S. downloads and updates for the TikTok app. The ban is now set to take effect Sept. 27 but could be further delayed or removed if the proposed new partnership goes forward.
Oracle would have a 12.5% stake in the new entity called TikTok Global and would provide secure cloud service for data on the popular app.
Walmart agreed to purchase 7.5% of TikTok Global as well as entering into commercial agreements to provide e-commerce, fulfillment, payments, and other services to the new company.
TikTok’s current owner, Beijing-based ByteDance Ltd., would retain roughly 80% ownership of the company. But because ByteDance is about 40% owned by U.S. investors, the new company with equity stakes for Oracle and Walmart can be described as having majority American ownership.