Oracle Corp. finally cracks the deal to take a stake in TikTok and US President Donald Trump also gave approval to it. But, Oracle Corp. isn’t the only investor, Walmart is also there in the deal. The new formation having TikTok with its majority in stake and other investors like Oracle and Walmart will be called TikTok Global.
As per the reports, Oracle has a plan to acquire a 12.5% stake and along with that it will be TikTok’s ‘trusted technology partner’. That is because Oracle will house TikTok’s data in that US server and also get access to the source code and algorithm so that it can review, update, and monitor the entire setup.
Walmart, on the other hand, will take a 7.5% stake of TikTok Global. The Chief Executive Officer of Walmart, Doug McMillon will be one of the board members of TikTok Global.
Bentonville, Arkansas-based Walmart said in a statement, “This partnership will provide Walmart with an important way for us to expand our reach and serve omnichannel customers as well as grow our third-party marketplace, fulfillment and advertising businesses,”
The new formation is likely to be headquartered in Texas and will hire a minimum of 25,000 people though the timeline is not disclosed yet. Apart from this, TikTok Global will use proceeds of the IPO to create a $5 billion education fund on which Trump said, “That’s their contribution that I’ve been asking for”.
We need to keep in mind that only Trump’s approval is not enough for this deal, a green signal from the Chinese Government is also needed. Lastly, ByteDance still owns the 80% stake of TikTok global.
There is no word for WeChat, the Chinese messaging app that also facing a ban like TikTok.
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