Donald Trump has approved ByteDance’s deal with Oracle and Walmart to establish the future of the short-form video platform TikTok in the US.
The partnership will give Oracle a 12.5% stake in TikTok Global, while American retail giant Walmart will have a 7.5% stake.
TikTok Global has been newly created for the purpose of the deal and will provide the platform’s services to users across the world. Four of the company’s five board members will be American and its headquarters will be moved to the US which will create 25,000 jobs across the country. Oracle has reassured the administration that it will address Trump’s national security concerns about TikTok and will provide secure cloud services.
In a statement, Walmart said that the initial public offering of TikTok Global in the US could be expected in less than a year. According to Oracle and Walmart’s joint statement, the global TikTok business will pay over $5 billion in new taxes to the U.S. Treasury Department.
The deal still requires the approval of the Chinese government.