Trump reportedly approves sale of TikTok’s US operation to Oracle, Walmart
21 September 2020 | 0
US President Trump has signed off on a deal that will put TikTok’s operations under control of Oracle, Walmart, and other domestic investors, apparently in exchange for a $5 billion fund that Oracle and Walmart would set up to fund the education of young Americans.
The Wall Street Journal reported that both Walmart and Oracle would share approximately a 20 percent stake in the new company, which would be headquartered in the United States. In total, US investors would own 53 percent, Chinese investors would own a 36% stake, with European investors taking up about 11%, the paper said.
Trump had ordered TikTok, the popular short-form consumer video site, shut down within the United States allegedly because officials were concerned that the site was sharing data captured with the Chinese government. Microsoft had expressed interest in buying the company, but later said that it would not be acquiring TikTok. Instead, Oracle said it would be a technology provider. Walmart’s participation had not been reported until then.
Trump had originally asked for a sort of finder’s fee for facilitating the deal – which, of course, came about because he ordered TikTok’s US operations shut down. According to the Journal, he may have received it: Oracle and Walmart will spend $5 billion to fund education for young Americans. It’s not clear whether the fund will be used for what the Trupm administration has called patriotic education,’ to counter what the President said was “decades of left-wing indoctrination in our schools,” according to The New York Times.
IDG News Service