Chinese tech giant ByteDance is seeking a valuation of $60 billion for its video sharing app TikTok under a new agreement that has received the approval of US President Donald Trump.
According to Bloomberg, Oracle will own a 12.5 per cent stake in a newly established TikTok Global, while Walmart will take a 7.5 per cent stake in the firm.
ByteDance may end up taking 80 per cent stake in the new company, which would include the app's operations in the US and other countries, excluding China.
Oracle and Walmart will pay a combined $12 billion for their stakes in TikTok Global if they agree to ByteDance's $60 billion asking price. Venture firms General Atlantic and Sequoia Capital may also buy equity in the new business, according to Bloomberg.
The US investors currently own nearly 40 per cent of ByteDance, meaning that the US investors, including Oracle and Walmart, will directly or indirectly own more than 50 per cent of TikTok Global.
Under the current proposal, the board of TikTok Global will have five seats, with Walmart's CEO Doug McMillon becoming a board director.
Oracle will work as a technology partner with ByteDance, while Walmart will be a business partner. Oracle has reportedly assured the government that it is able to address security concerns linked with TikTok and to protect American users' data from foreign influence.
"Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud," CEO Safra Catz said in a statement.
"We are a 100 per cent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok's American users," she added.
Earlier on Saturday, Trump disclosed that he had approved Oracle-TikTok deal "in concept" and that it would be "great" if the companies involved are able to take the deal to a final conclusion.
"If they don't, that's OK too," he said.
The US Department of Commerce also announced on Saturday that it was delaying its TikTok ban, which was to come into effect on Sunday, until at least 27 September. The Department said that the decision was taken "in light of recent positive developments."
Addressing a rally of his supporters in Fayetteville, North Carolina, on Saturday, President Trump said that ByteDance had agreed to create 25,000 new jobs in the US and to set up a $5 billion fund for "patriotic education".
"I said, you know, do me a favour, could you put up $5 billion into a fund for education, so we can educate people as to the real history of our country, not the fake history," Trump said.
But, ByteDance stated on Sunday that it had not agreed to set up a $5 billion education fund in the US.
"The company has been committed to investing in the education field, and plans to work with partners and global shareholders to launch online classroom projects based on AI and video technology for students around the world," the Chinese company said on social media platform Toutiao.
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