TRUMP BACKS PROPOSED TIKTOK PARTNERSHIP

Plan would see video app join with Oracle, Walmart to become U.S. company

President Donald Trump said Saturday he’s given his “blessing” to a proposed deal that would see the popular video-sharing app Tiktok partner with Oracle and Walmart to become a U.S. company.

Trump has targeted Chineseowned Tiktok for national security and data privacy concerns. The announcement comes just a day after the Commerce Department announced restrictions that if put in place could eventually make it nearly impossible for Tiktok fans to use the app.

Trump said if completed the deal would create a new company likely to be based in Texas.

“I have given the deal my blessing,” he said. “If they get it done, that’s great. If they don’t, that’s OK too.”

Trump said the new company will be hiring at least 25,000 people and making a $5 billion contribution to a fund dedicated to education for Americans. “That’s their contribution that I’ve been asking for,” he said.

“We are 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.,” Tiktok said in a statement.

Tiktok said both Oracle and Walmart will take part in a financing round before an initial public offering of stock, where they can take up to a 20 percent cumulative stake in the company.

The deal will make Oracle responsible for hosting all Tiktok’s U.S. user data and securing computer systems to ensure U.S. national security requirements are satisfied. Tiktok said it’s also working with Walmart on a “commercial partnership” but gave no other details.

Oracle said in a separate statement that it would take a 12.5 percent stake in Tiktok Global. Representatives for Walmart could not be immediately reached for comment late Saturday.

Trump has been demanding that the U.S. operations of Tiktok, a video app popular with younger people, be sold to a U.S. company or else be shut down. He’s also been targeting Wechat, another Chinese-owned app. The dispute over the two apps is the latest f lashpoint in the rising tensions between the world’s two largest economies.

Trump said the new company — Tiktok Global — “will have nothing to do with China.”

Just a day earlier, the U.S. Commerce Department said it would bar Tiktok from U.S. app stores as of late Sunday. Further restrictions that would prevent Tiktok from accessing essential Internet services in the country would go into effect on Nov. 12. Commerce said Saturday that it will delay the barring of Tiktok from U.S. app stores until Sept. 27 at 11:59 p.m

Commerce is imposing similar restrictions on Wechat, will go into effect tonight at 11:59 p.m.