President Trump to rule on TikTok deal with Walmart and Oracle to take a 20% stake

Oracle Corp (NYSE:ORCL). will get full access to review TikTok’s source code and updates to make sure there are no back doors used by the company’s Chinese parent to gather data on the video-sharing app’s 100 million American users, according to people familiar with the matter.Source:Bloomberg.com

A deal is still in the works for Walmart and Oracle will partner to buy TikTok. Oracle would own roughly 20% of the Company. President trump is expected to make a decision by Friday- or within 24 to 36 hours about the fate of the company. Secretary of Treasury Steve Mnuchin, Jared Kushner, Secretary of Treasury Steve Mnuchin, and Secretary of State Mike Pompeo are meeting about the future of TikTok.

President Donald Trump has repeatedly said that he does not want ByteDance- which owns TikTok to have a majority stake in the company.  President trump states: “Conceptually, I can tell you, I don’t like that,” Trump said of Beijing-based ByteDance’s majority ownership. “If that’s the case, I’m not going to be happy with that.”

In a second executive order from the president, TikTok must sell all of its U.S. assets to an American company or group of U.S. investors by Nov. 12.

If the deal get approved, Walmart CEO Doug McMillon will hold a board seat at the newly formed TikTok.

Oracle, a database, and cloud storage company says it will be TikTok’s “trusted technology partner,” but the union  has not yet been defined.

Before the Oracle Walmart partnership Microsoft was a bidder for the company.   Microsoft statement was ,” Following a conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, Microsoft is prepared to continue discussions to explore a purchase of TikTok in the United States. Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury. Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.” Source Microsoft

Donald Trump also has an  executive order on addressing the threat posed by WeChat “As I explained in an Executive Order of August 6, 2020 (Addressing the Threat Posed by TikTok, and Taking Additional Steps to Address the National Emergency With Respect to the Information and Communications Technology and Services Supply Chain), the spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China (China) continues to threaten the national security, foreign policy, and economy of the United States.  To protect our Nation, I took action to address the threat posed by one mobile application, TikTok.  Further action is needed to address a similar threat posed by another mobile application, WeChat.” Source White House

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