Oracle/Walmart: TikTok provisional US government approval
In an announcement made by Oracle the company has reported a provisional agreement with the US government to resolve outstanding TikTok issues. As a result Oracle and Walmart - together - will acquire 20% of the TikTok Global business.
As part of a recent deal, TikTok has established a new company known as TikTok Global. This company will provide all services to users in the United States, as well as most users in the rest of the world.
Following the establishment of TikTok Global the company will be an independent American company, that is majority owned by America. In addition the Board of Directors will have four American members out of the total five, and all TikTok technology will be in possession of TikTok Global, following US laws and privacy regulations.
In the recent announcement made by Oracle, the administration has conditionally approved a deal in which Oracle will become the provider of secure cloud to TikTok. As part of the deal, Oracle will provide data privacy to 100mn American users by moving all data to its Generation 2 Cloud data centres.
Oracle’s Generation 2 Cloud works to eliminate the risk of foreign governments spying on or influencing American users, with its full isolation of running applications and its autonomous response to security threats.
In addition to Oracle providing secure data privacy, Walmart aims to not only provide its equity position, but its omni-channel retail capabilities too, including: Walmart.com, eCommerce marketplace, fulfillment, payment and measurement-as-a-service advertising service.
By establishing TikTok Global in the US, the company is expected to create 25,000 jobs, and will pay over US$5bn in new tax dollars to the US Treasury.
Alongside Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue, TikTok Global has plans to establish an educational initiative that is artificial intelligence (AI) diven. The online video curriculum will teach children a variety of educational subjects including: reading, maths, science, history, computer engineering and more.
Image source: TikTok