In a dramatic twist to the ongoing TikTok saga, the mysterious consortium of American buyers poised to rescue the viral video app from a US ban can finally be revealed. The deal, personally brokered and announced by President Donald Trump, hinges on the formation of a new US-headquartered entity, TikTok Global, with tech giant Oracle and retail behemoth Walmart as its cornerstone investors.
The Trump-Approved Blueprint
The arrangement, which received provisional approval from the President over the weekend, is a masterstroke of corporate and political negotiation. It effectively circumvents a threatened executive order that would have removed TikTok from US app stores due to national security concerns over its Chinese ownership.
Under the complex terms of the deal:
- Oracle is set to take a staggering 12.5% stake and will become TikTok's "trusted technology provider", safeguarding the data of millions of American users on its secure cloud infrastructure.
- Walmart, which had previously expressed acquisition interest, will secure a 7.5% share. The retail colossus plans to leverage TikTok's immense popularity for its burgeoning e-commerce and payments ambitions.
- The new company, TikTok Global, will be headquartered in the United States and is expected to create over 25,000 new jobs.
A Political and Economic Victory
President Trump hailed the agreement as a decisive win for the United States, touting the massive job creation and the assurance that American data would be "secure and safe from foreign influence." The deal also includes a promise of a $5 billion educational fund, a point the President emphasised heavily.
However, the agreement is not yet set in stone. The proposal still requires formal approval from the Chinese government, which has recently updated its export control rules, potentially giving it a say over the transfer of TikTok's sophisticated algorithm—the very engine of the app's success. This leaves a critical element of uncertainty hanging over the entire transaction.
The Road Ahead
While the involvement of two iconic American companies has satisfied the White House's immediate security demands, the coming weeks will be crucial. All eyes are now on Beijing, whose stance could make or break the most closely watched tech deal of the year. For now, TikTok's 100 million US users can breathe a sigh of relief, as the looming threat of a shutdown has been temporarily suspended.
