16 Oct TikTok Global: from being banned in the US to internal agreements with Oracle and Walmart
Bytedance announced the birth of TikTok Global, a new company created in collaboration with two North American giants, Walmart and Oracle.
The new company will be controlled by its former owner 80%, while the two North American companies will share the remaining 20% (Oracle 12.5% and Walmart 7.5%).
Bytedance explained that Oracle will have access to the application’s source code, but not to its algorithms, something Trump deemed vital from the start.
According to sources from the operation, TikTok Global plans to create more than 25,000 new jobs in the United States in the coming years.
A shaky weekend for TikTok
The Commerce Department of Donald Trump’s government announced through a press release that TikTok and WeChat will be blocked in the United States as of September 20. The ban was applied following an executive order issued in August. TikTok was given 45 days to sell its business in the United States to a company in that country.
In addition, Trump threatened to ban “providing any service through mobile applications to transfer money or process payments within the US,” so payment applications cannot be made within these limits.
“Under the leadership of the President, we have taken significant steps to combat the malicious collection of personal data from US citizens in China, while promoting our national values, rule-based democratic norms, and the active enforcement of US laws and regulations,” said the Secretary of the Department of Commerce, Wilbur Ross.
Currently, TikTok has close to 100 million users in the United States and a similar number of users in Europe, making it one of the most important social applications today.