The US Commerce Department said it is postponing the planned block of new TikTok downloads until September 27, in light of President Donald Trump's new announcement. TikTok Global will likely be headquartered in Texas and will hire "at least" 25,000 people, Trump said. He added that Oracle and Walmart will have "total control" over the app. They're going to own the controlling interest. "And if we find that they don't have total control, then we're not going to approve the deal".
The president's comments contradict a statement released by ByteDance Monday morning. And Trump said Saturday he wants $5 billion from companies creating a new US -based TikTok venture directed toward teaching American children "the real history of our country". The agreement will create a new US-based subsidiary known as TikTok Global.
According to the company, "Upon creation of TikTok Global, Oracle/Walmart will make their investment and the TikTok Global shares will be distributed to their owners, Americans will be the majority and ByteDance will have no ownership in TikTok Global". ByteDance would continue to have control over the algorithm.
The company also clarified on Monday that it is not aware of Trump's claim that there was a 5 billion-U.S. -dollar education fund included in the TikTok deal. Along with that, they will pay $ billion in taxes. "At the President's direction, we have taken significant action to combat China's malicious collection of American citizens' personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of USA laws and regulations".
ByteDance revealed to CGTN last week that the TikTok deal needs approval from both China and USA authorities.
AP reports that during a recent press conference, President Trump said that he expects to receive a report this week about Oracle's bid to join a partnership with the Chinese-owned app TikTok but that he will not sign off on the deal until all fears of national security are alleviated. The U.S. software giant has given reassurances it can protect TikTok user data from foreign influence.
Notably, shortly after the release of ByteDance statement that it would be holding 80 per cent stake in the newly formed TikTok entity which in effect would enable TikTok to continue operation for its 100 million United States users, Oracle said in a statement on Monday that the ByteDance stakes in TikTok Global would be distributed among ByteDance investors and the Beijing-based conglomerate holding would no longer have any stake in TikTok's global operation.