Oracle and Walmart will buy 20% of TikTok Global, the American company created for the social network to operate in that country

Oracle and Walmart will buy 20% of TikTok Global, the American company created for the social network to operate in that country

The agreement states that TikTok Global will comply with the privacy laws and regulations of the United States.

Oracle and Walmart will buy 20% of TikTok Global, the American company created for the social network to operate in that country

The preliminary agreement for the social network TikTok to continue operating in the United States translates into the creation of a new company called TikTok Global in which Oracle and Walmart will acquire a 20 percent stake, according to a joint statement by the two US companies. .

According to the agreement, TikTok will create a new company called TikTok Global, which is the one that will provide the services of TikTok -a company of Chinese origin- to users in the United States and “to the majority of users in the rest of the world.” the same time that Oracle becomes TikTok's cloud provider.

The agreement also stipulates that TikTok Global “will be majority owned by US investors , including Oracle and Walmart,” which will be an independent US company, based in the US and with four Americans out of the five members of the Board of Directors.

The US Government announced this Saturday that it will delay for a week the application of measures against the Chinese social network TikTok, which were to take effect this Sunday, after US President Donald Trump gave his “blessing” to a preliminary agreement so that it can operate in the country.

Trump stressed that Oracle and Walmart would partner with TikTok, “the security would be 100%, they will be using separate clouds and very powerful security and they will be making a contribution of 5 billion dollars in education.”

According to the statement from Walmart and Oracle, TikTok Global will create more than 25,000 new jobs in the United States and will pay more than 5,000 million dollars in taxes to the North American Treasury. TikTok Global, together with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue will create an online educational initiative for American children, from basic reading. and from math to science, history, and computer engineering.

Regarding security, the agreement establishes that “all TikTok technology will be in the possession of TikTok Global and will comply with US privacy laws and regulations, ” security that Trump also referred to when discussing the agreement.

TikTok's data security for 100 million Americans will be 100% assured, moving to Oracle's second-generation cloud data centers “the world's most secure.”

According to the statement, “This unique technology eliminates the risk of foreign governments spying on US users or trying to influence them with disinformation.”

“In light of recent positive developments, US Commerce Secretary Wilbur Ross, under the leadership of President Trump, will delay the ban on transactions identified in Executive Order 13942, related to the mobile application TikTok, which had entered in force on Sunday, September 20, 2020, until September 27, 2020, at 11:59 pm, “said this Department in a statement.

“We'll see if it happens or not, but conceptually I think it's a great deal for the US,” Trump said. In a statement posted on its website, TikTok notes that the joint proposal with Oracle and Walmart “will resolve the security concerns of the US Administration”, as well as “doubts about the future of TikTok” in that country.

In the statement, TikTok states that “Oracle will become our trusted technology provider” and that it will be “responsible for hosting all US user data” as well as for fully meeting US national security requirements. .UU “.

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