ByteDance aka TikTok Receives Tentative Approval
September 21, 2020The TikTok saga might be drawing to a close, and in a good way too. President Donald Trump has announced that the app’s owner, ByteDance has received tentative approval for an agreement with the U.S. Government. This will effectively end the uncertainty surrounding Tik Tok’s access to the American market.
This deal, should it pull through, will see Oracle and Walmart invest and acquire 20% of TikTok Global’s business. This newly formed company will be responsible for providing TikTok services to users in the United States and many other countries. It will also ensure that Oracle becomes TikTok’s secure cloud provider, and safeguard user data.
About 100 million American TikTok users will have their data stored in Oracle’s Generation 2 Cloud data centers, which is claimed to be the most secure cloud data centers in the world. This should help alleviate the concerns of the U.S. government pertaining to the alleged ‘unsavory’ online practices of the Chinese government.
Apparently, all of of TikTok’s technology will be in possession of TikTok Global, which will be majority owned by American investors. It is to be an independent company headquartered in the U.S., with four out of the five Board of Directors being American. It will also have an Initial Public Offering (IPO) in less than 12 months and be listed on a U.S. Exchange.
The TikTok deal will create more than 25,000 new jobs in the US, and TikTok Global is expected to pay more than 5 billion in new tax dollars to the U.S. Treasury. At this point, the agreement seems be a win-win for all, because the beloved social media app can continue to function and continue to be accessed by millions of American users.
Besides this, TikTok Global, Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue will work together to create an educational initiative. The goal is to provide an AI-driven online video curriculum to children and allow them access to a variety of courses from basic reading and math to science, history and computer engineering.
