Trump Administration delays TikTok prohibition after deal reportedly struck between Oracle and Walmart

The Trump Administration has delayed the TikTok prohibition after a deal has reportedly been struck between Oracle and Walmart.

According to a press release, the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok’s
future in the US.

As part of this proposal, Oracle will become TikTok’s technology provider, responsible for hosting all US user data and securing associated computer systems to ensure US national security requirements are fully satisfied. TikTok is currently working with Walmart on a commercial partnership as well. Both companies will take part in a TikTok Global pre-IPO financing round in which they can take up to a 20% cumulative stake in the company. TikTok Global’s headquarters in the US is also expected to expand, while bringing 25,000 jobs across the country.

Due to the announcement, Secretary of Commerce Wilbur Ross, at the direction of President Trump, will delay the prohibition of identified transactions pursuant to Executive Order 13942, related to the TikTok mobile application that would have been effective on Sunday, September 20, 2020, until September 27, 2020 at 11:59 p.m.