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TikTok avoids shutdown

Video Credit: Reuters - Politics - Duration: 01:40s - Published
TikTok avoids shutdown

TikTok avoids shutdown

[NFA] U.S. President Donald Trump said on Saturday he supported a deal in principle that would allow TikTok to continue to operate in the United States, even as it appeared to conflict with his earlier order for China's ByteDance to divest the video app.

Emer McCarthy reports.

Donald Trump said Saturday (September 19) he supported a deal in principle that would allow popular video sharing app TikTok to continue to operate in the United States, even as it appeared to conflict with his earlier order for China's ByteDance to divest.

ByteDance was racing to avoid a crackdown on TikTok after the U.S. Commerce Department said on Friday (September 18) it would block new downloads and updates to the app from Sunday (September 20).

U.S. officials had expressed concern that the personal data of as many as 100 million American users were being passed on to the Chinese government.

Trump signed an executive order last month giving ByteDance 90 days to sell TikTok.

The deal announced on Saturday, however, is structured as a partnership rather than a divestment.

"So, everybody will be happy.

It's a severance.

It'll continue to be named TikTok as it was all along.

And that's it.

That's it.

So, I can say that I have given the deal my blessing.

If they get it done, that's great.

If they don't, that's OK, too.

But, it's a great deal for America and uh - very interesting." Trump said TikTok will be owned by a new company, TikTok Global, and will be headquartered in the United States.

Oracle will take a 12.5% stake in TikTok Global and store all its U.S. user data on its cloud to comply with national security requirements.

Retail giant Walmart said it would take a 7.5% stake.




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