Oracle and Walmart Form TikTok Global to Save it From Trump Administration’s Threat to Ban App Downloads

After weeks of uncertainty, the Donald Trump administration has given the green light for the company to continue its operations in the USA after the president slapped it with threat to ban downloads from midnight Sunday, September 20.

As part of the deal to rescue TikTok, U.S. tech company Oracle is joined hands with Walmart to form a new entity called TikTok Global, which will be headquartered in the United States.

According to Associated Press, that arrangement appears to satisfy the White House’s concerns over the security of American user data.

Oracle and Walmart Merger saves TikTok from Trump’s administration over fears of national security threats

“I have given the deal my blessing,” Trump said. “I approve the deal in concept.”

The parent Chinese company ByteDance is expected to maintain its majority-ownership position.

TikTok, which has some 100 million active monthly users in the U.S., is owned by Chinese tech giant ByteDance.

For months, President Donald Trump has been pushing TikTok to break ties with ByteDance. Officials in the White House and some Democrats in Washington fear China’s authoritarian regime could access Americans’ data through the app and use the information to blackmail or launch disinformation campaigns.

Under the new arrangement, Oracle will host all of TikTok’s U.S. user data and will safeguard TikTok’s computer systems “to ensure U.S. national security requirements are fully satisfied,” TikTok said in a statement.

“While we strongly disagree with the implications of TikTok as a national security threat, we nonetheless understand the concerns,” wrote Vanessa Pappas, interim head of TikTok, in a statement on Saturday.

“We’re pleased that today we’ve confirmed a proposal that resolves the Administration’s security concerns and settles questions around TikTok’s future in the US.”

Analysts say Oracle’s cloud computing business will receive a major boost as a result of the deal. Oracle has been lagging behind competitors, such as Amazon, Microsoft and Google, for cloud storage business. Oracle executives have close ties to Trump.


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