On Saturday, President Donald Trump said that he has given his "blessing" to a proposed deal that would allow the Chinese video-sharing app TikTok to partner with Oracle and Walmart and become a U.S. company.
Trump targeted this Chinese-owned app for national security and data privacy concerns. This announcement came after a day after the Commerce Department put restrictions that may make it impossible for fans to use their favorite app.
Trump also said that if this deal gets finalized, it will develop a new company based in Texas.
He said, "I have given the deal my blessing." "If they get it done, that's great. If they don't, that's OK too."
Trump also mentioned that the new company would hire 25,000 people and make a $5 billion contributions to a fund dedicated to education for Americans. He said, "That's their contribution that I've been asking for."
TikTok said in a statement, "We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. Administration and settle questions around TikTok's future in the U.S."
According to TikTok, both Oracle and Walmart will take part in a financing round before an initial public offering of stock. They can take up to a 20% cumulative stake in the company.
The U.S. Treasury Department said that TikTok's deal with Oracle and Walmart also needs documentation and conditions approved by the Committee on Foreign Investment in the United States.