ByteDance has received a reprieve from the US ban on TikTok following the creation of TikTok Global, in which Oracle and Walmart will have a 20 percent stake.
An Oracle announcement earlier noted that it has acquired a 12.5 percent stake. This means that Walmart will be holding 7.5 percent. TikTok Global will be majority owned by US investors with four out of five board members being American. It will be responsible for providing all TikTok services to users in US and most of the users in the rest of the world.
The US government has conditionally approved a landmark deal where Oracle becomes TikTok’s secure cloud provider. With the tentative approval, the short video platform will continue to be available to US residents.
Data privacy secured
According to Oracle, all the TikTok technology will be in possession of TikTok Global, and comply with US laws and privacy regulations. Data privacy for 100 million American TikTok users will be quickly established by moving all American data to Oracle’s Generation 2 Cloud data centres.
Walmart will bring its omni-channel retail capabilities including its Walmart.com assortment, eCommerce marketplace, fulfillment, payment and measurement-as-a-service advertising service.
TikTok Global is aiming for an Initial Public Offering (IPO) on a US exchange in less than 12 months.