Trump supports deal to allow TikTok to continue to operate in US
US shareholders are expected to control 53 per cent of TikTok Global, a new company that will assume the app's US operations and ensure US national security requirements are met
WASHINGTON/NEW YORK: President Donald Trump said he supports a deal that will allow TikTok to continue to operate in the United States, after threatening to ban the Chinese-owned app in August.
He said he backs the deal with TikTok owner ByteDance, Oracle and Walmart to create a new company that will assume TikTok's US operations called TikTok Global.
The US Treasury said in a statement: "Oracle will be responsible for key technology and security responsibilities to protect all US user data.
"Approval of the transaction is subject to a closing with Oracle and Walmart and necessary documentation and conditions to be approved by" the Committee on Foreign Investment in the United States.
The Commerce Department said on Saturday it will delay by one week an order that had been set to take effect late Sunday that would stop Google and Apple from offering TikTok in their US app stores.
A person briefed on the matter said the administration had given the parties a week to close the deal.
US shareholders are expected to control 53 per cent of TikTok Global, while Chinese investors will hold 36 per cent.
Mr Trump said the new company will be "totally controlled by Oracle and Walmar ... All of the control is Oracle and Walmart."
TikTok said it was "pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok's future in the US".
TikTok said Oracle will become the company's "trusted technology provider, responsible for hosting all US user data and securing associated computer systems to ensure US national security requirements are fully satisfied".
Mr Trump offered strong support for the deal, which he said would create 25,000 US jobs.
"I have given the deal my blessing," Mr Trump said. "I approve the deal in concept."
About 100 million Americans use TikTok and US officials have expressed concern about user data and the potential for China to access that data.
"The security will be 100 per cent," Mr Trump told reporters.
China must still approve the deal.
"We'll see whether or not it all happens," Mr Trump said. - REUTERS