American president Donald Trump announced at a press conference at the White House on Saturday that he was behind the plan for a deal between Oracle and TikTok-owner ByteDance. Earlier this week, Trump said he expected the deal to go away. Because of the agreement, the introduction of an American ban on the app, which would enter into force on Sunday, has been postponed by a week.
The US government wants TikTok to be owned by an American company, because the origin Chinese app would pose a threat to US national security.
The American company Oracle announced on Monday that a proposal for a deal with ByteDance had been sent to the US government. Trump announced on Wednesday that he had not yet examined the proposal, but expected that the deal would not meet the requirements.
Trump is now in favour of the agreement, which should ensure that TikTok can still be used in the US.
ByteDance had to make a deal with an American company by Sunday. If no agreement was reached, Trump threatened to ban the app altogether. In that case, American Apple stores would no longer be allowed to offer TikTok.
On the night of Saturday on Sunday (Dutch time), the US Department of Trade announced that the ban would be postponed by a week due to “positive developments”.
According to the US president, Oracle has answered all questions of national security and the deal will create 25,000 additional jobs. “Safety will be 100%. The draft plan would make a fantastic deal for the US,” says Trump.
As part of the deal, a new company has to take over TikTok’s duties in the United States. According to Trump, this company will be wholly owned by Oracle and the American supermarket chain Walmart.
The Chinese government still has to authorize the deal.