Bytedance: Form a principled consensus on cooperation with Oracle and Wal-Mart on TikTok
On the morning of September 20th, ByteDance issued a statement saying that in order to ensure that 100 million Americans can continue to use TikTok, this highly popular video and content application, meet the regulatory requirements of the US government and strengthen TikTok’s US business, ByteDance, Oracle and Wal-Mart have reached a principled consensus on TikTok's cooperation.
The three parties will follow this consensus to reach a cooperation agreement that meets the legal requirements of the United States and China as soon as possible.
On the same day, according to the World Wide Web report, US President Trang told reporters that he approved the cooperation agreement between Oracle and TikTok.
"This transaction has been my blessing," Trump said, "I have approved the transaction in theory."
According to the proposal, TikTok’s headquarters will remain in the United States, and Oracle will become TikTok’s partner in data security compliance, providing cloud architecture services for US users.
The cooperation model between the two parties is similar to Apple's data security compliance cooperation in China from Guizhou on the cloud.
Since TikTok's US business has offices in Los Angeles, California, the program is also called "California on the Cloud."
The program does not involve technology and algorithm transfer.
According to reports, TikTok will add 25,000 jobs in the next few years to support rapid business development.
At the same time, under the control of Bytedance, TikTok will form a new board of directors and management.
TikTok will open a new round of financing of no more than 20% in the same period, and Oracle and Wal-Mart will be introduced as potential investors with first-hand purchase rights.
If market conditions permit, TikTok will complete an initial public offering (IPO) in the United States within one year.
At the same time, TikTok will also jointly invest US$5 billion with Oracle, Wal-Mart, GA and SIG to establish a global education foundation to improve global education through technology and online videos.
"Oracle Cloud Infrastructure will empower TikTok's next phase of development, and at the same time, ensure that the company's business follows the most stringent security standards." Oracle founder and chief technology officer Larry Ellison (Larry Ellison) said.
"TikTok, Oracle and Wal-Mart will join hands to promote the development of the next global Internet giant."
"Walmart is very pleased to work with ByteDance and Oracle to build TikTok into a more popular service application in the United States." Walmart CEO Doug McMillon said, "We look forward to the final completion of the transaction and start serving us Customers and create more jobs."
The proposal has received preliminary approval from the US government, which will allow US users to continue to use TikTok.
On Saturday, Trump told reporters that he had agreed to this plan in principle.
However, the plan will finally take effect, and it still needs the final formal agreement of all parties.
Comprehensive report by The Paper reporter Chen Yuxi