The President Donald Trump administration has given the green light for TikTok to become a U.S. company, and the White House could approve the deal as soon as Tuesday afternoon (Sept. 15), the Financial Times (FT) reported.
U.S. Treasury Secretary Steven Mnuchin told CNBC that ByteDance, the video-sharing app’s China-based parent company, has agreed to create TikTok Global as a U.S.-based company.
Under the terms of the deal, ByteDance would keep its majority shareholding, with Oracle, the Redwood City, California, global computer technology corporation, holding a minority share, FT reported. Oracle would have a stake in TikTok’s global operations, not just those in the U.S.
On Monday, (Sept. 14), Oracle confirmed it has been selected by ByteDance to be the “trusted technology provider” that will take over Chinese-based TikTok’s U.S. operations in the U.S.
The two-sentence statement was issued Monday following Mnuchin’s announcement of Oracle’s winning bid for TikTok’s U.S. operations on CNBC.
Oracle beat out a bid by Microsoft for TikTok. Trump had threatened to ban the app in the U.S., alleging that it could share Americans’ personal information with the Chinese government.
This could put an end to the drama that has been played out on a public stage. Trump issued an executive order on Aug. 6 prohibiting American companies from conducting business with ByteDance over fears the Chinese company would share private information about American users to the government. The president ordered the sale of its California’s headquarters to a U.S. company by Sept. 20.
ByteDance has denied the allegations that it provides user data to the government.
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