President Trump told reporters Saturday that he has approved the deal between Oracle and TikTok "in concept", and the U.S. Department of Commerce followed up by issuing a statement that stayed Sunday's ban of the app for one week.
TikTok, which says its service is used by 100 million Americans, became hugely popular in the United States after its parent company ByteDance acquired USA short-video platform Musical.ly in 2017 at a price tag of around $1 billion.
In its "Statement on Delayed Prohibitions Related to TikTok", the department said "in light of recent positive developments, Secretary of Commerce Wilbur Ross, at the direction of President Trump, will delay the prohibition of identified transactions pursuant to Executive Order 13942" until September 27 at 11:59 pm.
In the complaint, Bloomberg reported, TikTok purportedly alleges that U.S. President Donald Trump exceeded his authority with the ban and enacted it for political reasons rather than to stop an "unusual and extraordinary threat" to the U.S. The complaint also reportedly maintains that the ban violates TikTok's First Amendment freedom of speech rights, according to Bloomberg.
"So, everybody will be happy".
It could also allow Americans to continue using the wildly popular app: the US Department of Commerce announced it was postponing the ban on TikTok downloads until September 27, citing "recent positive developments". And that's it. That's it.
"If they get it done. that's great. If they don't, that's okay, too".
The deal will also include Wal-Mart (WMT), Trump said.
Lakers Roll Past Nuggets 126-114 in West Finals Opener
It was the first time this season that Murray and Jokic both had three fouls before halftime. Michael Porter Jr had 14 points, but no other Denver player reached double figures.
Under the proposed deal, ByteDance may end up owning as much as 80% of TikTok Global, which include the app's operations in the USA and the rest of the world excluding China.
Oracle will take a 12.5% stake in TikTok Global and store all its USA user data on its cloud to comply with national security requirements. Both Oracle and Walmart will "take part in a pre-IPO financing round in which they can take up to a 20 percent cumulative stake in the company", said a company statement.
ByteDance began holding discussions with investors in its USA operations after the Trump administration threatened to shutter the business, saying that it poses a threat to national security.
ByteDance, TikTok, Oracle and Walmart did not immediately respond to requests for comment on the report.
Trump has often claimed, without providing evidence, that TikTok and WeChat are collecting user data for Beijing.
Restrictions on TikTok were pushed back by a week Saturday after President Donald Trump said he supported a proposed deal that would make TikTok a US company.
A United States federal judge has approved a request from a group of WeChat users to delay looming USA government restrictions that would effectively make the popular app almost impossible to use in the country. A business insider familiar with the deal told Xinhua that TikTok had a plan to finish IPO in the USA market in one year if possible. Redwood Shores, Calif. -based Oracle said it will acquire a 12.5-percent stake in TikTok, though the terms of the acquisition weren't disclosed.
Nevertheless, the deal between TikTok, Walmart, and Oracle is final yet as the Chinese government's approval is required, so the fate of the company hasn't been set in stone yet.