Donald Trump blesses deal for Oracle & Walmart to handle US operations of TikTok!
Galatta | Sep 20, 2020, 03:17 pm
One of the most popular as well as widely criticised apps is the short video sharing app TikTok! However, the app has been under fire in recent times with governments fearing that it might cause security concerns by revealing users' personal data to the Chinese Government. The Government of India has already banned TikTok and a number of other Chinese apps, including PubG and many others. There were similar calls for banning the app in other countries like Australia and the United States of America. Just a couple of weeks back, a special Senate Committee banned using TikTok on any Federal device by government employees. There were reports that TikTok would be taken off app stores from today (September 20) with further restrictions on TikTok accessing essential internet services in the country, coming into effect from November 12th!
However, tech giant Oracle and Walmart had expressed interest in taking over the US operations of TikTok and now it looks like the deal has been finalised. Donald Trump had earlier decreed that TikTok be sold to an American Company or have its US operations be shut down. The new deal will have Oracle and Walmart taking over the American operations of TikTok with Oracle hosting all the data of US TikTok users and securing their computer systems to ensure US national security requirements are met. TikTok has revealed that Oracle and Walmart will take part in a round of financing to obtain a cumulative 20% stake in their company. TikTok is also working with Walmart for a "commerical partnership" but it yet to reveal further details! Talking about the deal, US President Donald Trump has stated that he has given it his "blessing"!
Trump said, "I have given the deal my blessing. If they get it done, that's great. If they don't, that's OK too." He also added that this deal would result in the formation of a new company in Texas, which would generate at least 25,000 jobs and also a donation of $5 billion for a fund dedicated to education for Americans. Amid escalating tensions between the USA and China, Donald Trump has been aggressively advocating the ban of TikTok and WeChat, citing that these apps compromise the security of the nation as well as data privacy. WeChat is all set to be banned from tonight and a petition against this ban by WeChat users was also quashed by the US Government. Stay tuned for updates...