President Donald Trump has given Oracle, Walmart and ByteDance his nod of approval to proceed with a deal.
Under the proposed deal, Oracle and Walmart agreed to take a collective 20% stake in TikTok Global, a new company carved out of Beijing-based ByteDance that would include all operations outside of China. The company also added it was a 'rumor' that TikTok Global would be controlled by American investors, noting that its majority owners, its proprietary technology as well as the weight of its executive board, would remain China-based.
CNBC has reported Chinese state media said Beijing will reject the deal in its current form.
“The current plan does not involve the transfer of any algorithms and technologies,' ByteDance said. "Oracle has the authority to check the source code of TikTok USA."
Walmart's contribution to the deal was described as a "commercial partnership" with TikTok that would give the world's largest retailer a 7.5% stake in the tech group's global operations.
Both deals comes less than 24 hours after the Commerce Department said it would block any new downloads of the app, as well as the China-based messaging system WeChat, in order to combat what it call the "malicious collection of American citizens’ personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of U.S. laws and regulations.”
Earlier Saturday, the Commerce Department extended the deadline for a ban on new TikTok downloads until September 27. The fullest ban for TikTok, however, was pegged for November 12, "for the national security concerns posed by TikTok to be resolved", providing a longer window for Oracle and its consortium to get Presidential approval.
In the video above, Jim Cramer breaks down what he expects as Wall Street awaits the next headline.
Latest Videos From TheStreet and Jim Cramer:
- What to Expect from Tesla's Battery Day
- Market Update: Stocks Rise on Tuesday, Sept. 22
- Microsoft's Biggest Acquisitions
- Why Jim Cramer Says Tesla's Battery Day Is 'Very Bullish'
- Jim Cramer Manages Tech Stocks in His Portfolio
- Jim Cramer Adds Nike to His Action Alerts PLUS Portfolio
- Walmart Targets Zero Carbon Emissions by 2040