Oracle and Walmart have accorded to take possession of a 20% stake of TikTok. Both parties have agreed to take up a share of app’s global business as a part of it’s pre-IPO round. The ByteDance’s press release on Saturday to confirm this deal after President Donald Trump had given his “blessings” to the deal.
– Walmart will acquire 7.5% of the stakes while Oracle will obtain a 12.5% stake in TikTok.
– After this partnership, there will be a new company under the name of TikTok Global that will go public within 12 months on the U.S. exchange.
– Oracle will serve as a “secure technology provider” of TikTok as a part of the deal. On the other hand, Walmart will be the commercial partner and will enter into a commercial agreement to offer e-commerce, fulfillment, omnichannel, and payment services.
– This is yet to be finally approved by U.S regulators, despite Trump’s blessing in favor of this deal. The U.S. president said on Saturday that he likes the agreement in concept. Though it still doesn’t meet Trumps initial attempt for US companies to acquire the TikTok completely.
With time, the ownership of the U.S. on TikTok Global will grow. U.S is doing this deal so Oracle can have access to TikTok’s source code to prevent any backdoor data stealing of U.S citizens.
The new entity would likely be founded on the premises of Texas and include a contribution of $5 billion for the education of American youth as Trump said to the reporters. However, it’s still unclear where the money will be going as Oracle and Walmart denoted it as the new tax to the U.S. Treasury.