Trump’s TikTok Drama Was Just Another Empty Threat
The unusual deal was there for the taking all along and doesn’t truly change much.
Ends with a whimper.
Photographer: Hollie Adams/BloombergThe TikTok saga is finally drawing to a messy conclusion, and it appears President Donald Trump may be content to backpedal and take a deal that is similar to something that was there all along.
On Saturday, Trump told reporters he has approved Oracle Corp.’s plan for TikTok “in concept” and has given the bid his “blessing.” The president said the new entity, called TikTok Global, would most likely establish a headquarters in Texas, hire “at least” 25,000 people and establish a $5 billion education fund for Americans. According to Bloomberg News, the proposal entails Oracle and Walmart Inc. taking a 20% stake in the new venture. In addition, U.S. investment firms General Atlantic and Sequoia Capital, which are investors in TikTok-owner ByteDance Ltd., are expected to take stakes as well. Bloomberg News also reported that under the terms of the agreement from earlier this week, ByteDance will retain an ownership stake in the restructured company and have control over TikTok’s algorithms. Further, Oracle would have access to TikTok’s source code to assess any changes. After Trump’s announcement, the Commerce Department said it would delay the restrictions it had announced on Friday that would have forced U.S. app stores to remove TikTok for new downloads on Sunday.