TikTok deal will bring 25,000 jobs to Texas if approved: Trump
TikTok is owned by Chinese company ByteDance
President Trump touted a tentative deal between TikTok's parent company and U.S. companies Oracle and Walmart, saying on Monday that the partnership could bring 25,000 jobs to Texas if the companies can prove there will be "zero security risk."
"It's going to bring 25,000 jobs, and it's going to be located in Texas, and they look forward to doing it," Trump told "Fox & Friends." "So they're moving it into our country. I like it. But we'll see how it comes out. There can be zero security risk.
TRUMP SIGNS OFF ON TIKTOK DEAL WITH ORACLE, WALMART
"Everything is going to be moved into a cloud done by Oracle, it's all through the cloud. And it's going to be totally controlled by Oracle ... and if we find that they don't have total control, then we're not going to approve the deal," he warned.
Walmart described the potential partnership as bringing 25,000 jobs "over time."
In this July 21, 2020 file photo, a man opens social media app 'TikTok' on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File)
"We believe this deal will benefit the U.S. in many ways, including bringing over 25,000 jobs over time as well as continuing to develop exciting, innovative products for people to enjoy around the world," Walmart said in a statement on Saturday.
Trump added that he welcomes the possibility of a U.S.-based TikTok as a competitor for current American social media giants.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ORCL | ORACLE CORP. | 116.00 | -2.67 | -2.25% |
| WMT | WALMART INC. | 59.27 | -0.38 | -0.64% |
"It would also be nice because it's good competitively with others, you know, having the competition for Facebook and others would be good," he said. "But we will be watching it very closely. On a preliminary basis, we like the fact that these are two great companies that do it."
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Walmart and Oracle would acquire a combined 20% of a not-yet-formed entity called TikTok Global under the deal approved by President Trump. In addition, the companies have indicated that TikTok Global will file for an initial public offering on a U.S. exchange if the deal goes through.
TikTok is owned by Chinese company ByteDance, which would hold the remaining 80% stake.