TikTok managed to temporarily postpone the app’s veto in the official Android and iOS stores. The deal with Oracle and Walmart moves forward, and American President Donald Trump said, on Saturday (19), that he approves the negotiation.
The deadline for the withdrawal of the app from Play Store and App Store would be today (20), but ByteDance managed another week to finalize the final details of the negotiation that will create the company TikTok Global. Oracle and Walmart will be responsible for 20% of the investment in the new company, which will allow the application to operate within the United States.
The idea of the negotiation is that Oracle, which holds 12.5% of the shares, is responsible for the cloud service of the social network, providing and hosting the platform data for several markets, including the USA. Walmart would take the commercial part, including e-commerce and advertising.
The US Department of Commerce confirmed that the TikTok veto was postponed by one week and, unlike what was reported during the week, ByteDance will remain the majority owner of the app in the agreement approved “conceptually” by Trump. ByteDance holds 80% of the company, but 40% of it is already from American investors, so the US government is technically satisfied.
“I gave my blessing to the negotiation,” the president reportedly told reporters on Saturday. “If they close the deal, that’s great. If they do not close, everything is also fine ”, he evaluated.
– TikTok_Comms (@tiktok_comms) September 19, 2020
Stocks and educational videos
The deal includes the payment of $ 5 billion in fees to the United States Treasury, and includes the launch of an educational video platform to be managed by Oracle, Walmart and investors like Coatue and Sequoia. The content will cover math, reading and science, as well as computer engineering and other advanced subjects.
According to Reuters, this part of the agreement would have surprised ByteDance, which said on Sunday (20) it was unaware of the educational plan as a requirement for the negotiation to be authorized. But the company said it was committed to educational issues.
The opening of shares on a stock exchange based in the USA is also part of the agreement authorized by Trump, which still expects the participation of American shareholders to “increase over time”. An IPO, or initial public offering, to be carried out by the new global company was already expected.
Negotiations between ByteDance, Oracle and Walmart continue in progress, and the new deadline for vetoing the app ends on September 27. TikTok has already processed the administration Trump to try to prevent the overthrow of app stores in the US, arguing that the executive order goes against the First Amendment to the country’s constitution and is motivated by political issues.