Trump, Murdoch, Dell: TikTok Deal Potential
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- The saga surrounding the potential ban of TikTok in the United States has taken another turn, with the Trump administration approving a deal that allows Oracle and Walmart...
- What: The Trump administration approved a deal for Oracle and Walmart to acquire stakes in TikTok.
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TikTok Deal: Trump Governance Approves Oracle and Walmart Partnership, Averting Ban
Table of Contents
Updated November 20, 2023
The saga surrounding the potential ban of TikTok in the United States has taken another turn, with the Trump administration approving a deal that allows Oracle and Walmart to take stakes in the popular video-sharing app. This development, announced in late 2020, aimed to address national security concerns raised by the app’s Chinese ownership, ByteDance. While the deal faced numerous legal challenges and ultimately stalled, its initial approval marked a significant moment in the ongoing tech and geopolitical tensions between the US and China. This article will detail the events leading to the deal, the specifics of the proposed partnership, the concerns that prompted the intervention, and the current status of TikTok in the US.
What Happened: A Timeline of Events
The US government’s concerns about TikTok began escalating in the summer of 2020. Here’s a breakdown of the key events:
* July 2020: The Trump administration threatened to ban TikTok and WeChat, citing national security risks.
* August 2020: Executive orders were issued prohibiting transactions with ByteDance and Tencent (WeChat’s parent company) after 45 days.
* September 2020: President Trump publicly endorsed a deal involving Oracle and Walmart, claiming it would create a new company, “TikTok Global,” with a majority US ownership. This is the deal detailed in the linked articles from Inc.com and Yahoo Finance.
* September 2020: Oracle and Walmart confirmed their involvement in a proposed partnership, outlining a plan for Oracle to become TikTok’s “trusted technology provider” and Walmart to take a significant equity stake.
* November 2020: The US Commerce Department delayed the tiktok ban several times, pending further review of the proposed deal.
* December 2020: The deal was put on hold due to ongoing negotiations and legal challenges.
* January 2021: The Biden administration paused the TikTok ban and initiated a broader review of the app’s security risks.
* june 2021: The Biden administration revoked the Trump-era executive orders targeting TikTok and WeChat.
* Present: TikTok continues to operate in the US, but remains under scrutiny. Negotiations for a potential deal continue, though with less urgency.
Why the Intervention? National Security Concerns
The core of the US government’s concerns revolved around data security and potential influence by the Chinese government. Specifically:
* Data Collection: TikTok collects vast amounts of user data, including browsing history, location data, and device information. The fear was that this data could be accessed by the Chinese government.
* Chinese Law: Chinese national security laws compel companies operating within China to cooperate with intelligence agencies. This raised concerns that ByteDance could be forced to share tiktok user data with the Chinese government,even if it didn’t want to.
* Content Moderation: There were concerns that the Chinese government could influence TikTok’s content moderation policies, possibly censoring content critical of China or promoting pro-China narratives.
* Algorithm Manipulation: The algorithm that determines which videos users see could be manipulated to influence public opinion.
The Proposed Oracle-Walmart Deal: Details and Structure
The proposed deal, as initially outlined, was complex.Here’s a breakdown:
* Oracle’s Role: Oracle was to become TikTok’s “trusted technology provider,” responsible for hosting all US user data and ensuring its security. They would also audit TikTok’s algorithms to ensure they