Trump "New TikTok to employ 25,000 instead of selling out"
US Commerce Department delays ban on TikTok app downloads
TikTok "Welcomes US administration's resolution of security concerns"
Trump Approves "TikTok-Oracle Agreement". Donald Trump, President of the United States, is speaking at a press conference held in the briefing room of the White House in Washington DC on the 18th (local time). Photo by Yonhap News
[Asia Economy Reporter Moon Hyewon]U.S. President Donald Trump announced on the 19th (local time) that he has approved an agreement with Oracle, a U.S. enterprise software company, regarding the sale negotiations of the Chinese video-sharing social media platform 'TikTok.'
According to foreign media, President Trump met with reporters at the White House on the same day and said about the ongoing sale negotiations between TikTok's parent company ByteDance and U.S. companies Oracle and Walmart, "I have conceptually approved this agreement," adding, "I think it will be a fantastic deal."
President Trump stated, "Security will be 100%," emphasizing that this agreement addresses concerns about U.S. national security.
He also explained that TikTok, Oracle, and Walmart will establish a new company called 'TikTok Global' in the U.S., which will manage the data and computer systems of U.S. users, and that this company will be headquartered in Texas and employ 25,000 people.
According to Bloomberg News, the new company also plans to donate $5 billion (approximately 5.8 trillion KRW) to an education fund based in Texas.
The Wall Street Journal (WSJ), citing sources familiar with the matter, reported that under this agreement, Oracle and Walmart will share a 20% stake in the new U.S.-based TikTok operating entity. According to the report, Oracle is expected to receive a larger share than Walmart, and combined with existing U.S. investors' shares, the U.S. will hold 53% of TikTok's total shares. Chinese investors will hold 36% of the total shares, and European investors will hold the remaining 11%. This condition aligns with President Trump's demand that the majority of shares in the newly established TikTok be held by U.S. shareholders.
TikTok stated, "We are pleased that the negotiation proposal between TikTok, Oracle, and Walmart resolves the U.S. administration's security concerns and dispels doubts about TikTok's prospects in the U.S.," adding "Oracle is a trusted technology provider and will oversee all U.S. user data processing and protect related systems to fully meet U.S. security requirements."
The U.S. Department of Commerce decided to delay the ban on offering the TikTok app on U.S. app platforms by one week. The Department of Commerce announced on the same day, "Due to recent positive progress in the negotiation process, the ban on downloading the TikTok app starting from the 20th will be postponed." This suspension will continue until 11:59 PM on the 27th.
Meanwhile, ahead of the November presidential election, President Trump is expected to present this agreement as another achievement. It is an agreement that resolves China's security threat while contributing to job creation within the U.S.
Previously, President Trump pushed for sanctions on TikTok and demanded the sale of its U.S. business, citing national security threats, claiming that the information of TikTok's U.S. users managed by the Chinese company ByteDance could be handed over to the Chinese Communist Party.
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