The U.S. Treasury Department issued a statement Saturday evening to officially highlight that President Donald Trump has reviewed a deal between TikTok, Oracle, and Walmart, and appears to approve of it.
“The President has reviewed a deal among Oracle, Walmart, and TikTok Global to address the national security threat posed by TikTok’s operations,” the statement from Treasury spokesperson Minica Crowley reads. “Oracle will be responsible for key technology and security responsibilities to protect all U.S. user data. Approval of the transaction is subject to a closing with Oracle and Walmart and necessary documentation and conditions to be approved by CFIUS.”
Thanks to this deal, and the Administration’s approval, the TikTok ban has been delayed until Sept. 27. If approved by the Treasury’s Committee on Foreign Investments in the United States (CFIUS), TikTok’s U.S. operations will remain mostly intact and operational. The tie-up with Oracle and Walmart may require approval from the Chinese government.
The ban was the result of a Commerce Department order Friday, precipitated by an executive order from President Donald Trump in August.
The announcement from Treasury comes on the heels of a statement issued by TikTok announcing a proposal with Oracle and Walmart to resolve any security concerns the U.S. government might have. Under the terms of this deal, Oracle would become a “trusted technology provider,” would host all U.S. user data, and secure “associated computer systems to ensure national security requirements are fully satisfied.”
Oracle also issued a statement Saturday evening noting that it would buy a 12.5% stake in TikTok Global.
“Oracle confirms Secretary Mnuchin’s statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider,” the company said. “Oracle has a 40-year track record providing secure, highly performant technology solutions.”
Finally, Walmart issued a statement noting that it would take up to a 7.5% stake in TikTik Global, that CEO Doug McMillon would join the board, and that it would provide its “ecommerce, fulfillment, payments, and other omnichannel services to TikTok Global.”
Bloomberg is also reporting that Trump wants $5B USD from the deal to go towards an education project that will “educate people as to real history of our country — the real history, not the fake history.” He told reporters at the White House Saturday that the companies agreed to contribute $5B to an “education foundation.”
While TikTok’s connection to esports might seem tangential, prior to Trump’s executive order the short-form video platform was starting to make strides with influencers and esports organizations. Many were beginning to evaluate the value of the platform for promotion, and in recent months brands such as Louis Vitton, Dior, Fendi, and Puma have utilized it despite concerns about it being banned in the U.S.
Esports does have a presence on the platform, though it pales in comparison to live streaming platforms such as Twitch and YouTube. The #esports hashtag has over 800M views, and influencers such as TSM player Ali “Myth” Kabbani (884.3K followers, 5.3M likes), FaZe Clan’s Frazier Khattri (1.9M followers, 13.8M likes), YouTube star Jimmy “MrBeast” Donaldson (12.1M followers, 135M likes), YouTuber Lannan “LazerBeam” Eacott (5.5M followers 41.7M likes), and many others have managed to garner respectable followings.
