US President Donald Trump said he “approves a deal in concept” that will allow TikTok to continue to operate in the United States, after threatening to ban the Chinese-owned app in August.
He told reporters at the White House he was giving the deal to Oracle with “my blessing” and that it had addressed US national security concerns.
About 100 million Americans use TikTok and US officials have expressed concern about user data and the potential for China to access that data.
“The security will be 100 percent,” Trump told reporters. “Conceptually it’s a great deal for America.”
Reuters reported on Thursday the new company, dubbed TikTok Global, will have a majority of American directors, a US chief executive and a security expert on the board.
Oracle has agreed to eventually own a 20 percent stake in the company, according to a source. If Walmart also successfully negotiates acquiring a stake, its CEO, Doug McMillon, would get a seat on TikTok Global’s board, the source said.
Trump said the new TikTok company will be “totally controlled by Oracle and Walmart.”