Remember when TikTok was almost, maybe, sort of banned in the U.S.? It was quite a saga, and a big part of that story involved then-President Donald Trump signing an order that greenlit a proposed deal for the popular video app. This move essentially signaled that a plan involving Oracle and Walmart taking a slice of TikTok met the U.S.'s national security requirements.
The TikTok Dilemma
Back then, TikTok, owned by China's ByteDance, was under heavy scrutiny from the U.S. government. The big worry was national security. Officials feared that the Chinese government could potentially get its hands on data from TikTok's American users or even influence the content people saw on the platform. These concerns led to some pretty drastic actions.
Initial Ban Attempts
To address these fears, President Trump had previously issued a couple of executive orders. One, from August 6, aimed to ban new downloads of the app. Another, from August 14, gave ByteDance a deadline to sell TikTok's U.S. operations. The idea was simple: force a change in ownership to protect American data and interests.
The Proposed Deal
In response to the pressure, a deal started to take shape involving some major American companies.
Who Was Involved?
The key players in this high-stakes negotiation were:
- Oracle: A big name in cloud computing and software.
- Walmart: The retail giant.
- ByteDance: TikTok's parent company.
What Was the Plan?
The proposed solution involved creating a new company called TikTok Global. Here's how it was supposed to work:
- TikTok Global would be in charge of handling U.S. user data.
- Oracle and Walmart would buy a stake in this new company. Oracle was slated to handle all U.S. user data and be able to inspect TikTok's source code.
- ByteDance would still hold a majority stake in TikTok Global, but Oracle and Walmart would have significant roles, aiming to address the U.S.'s security concerns.
Trump's Take
President Trump had his own strong opinions on the matter. He initially insisted that a U.S. company should "control" TikTok's operations in the country. He even demanded that a "huge chunk" of any sale price should go directly to the U.S. Treasury – a rather unusual request for a business deal. However, he eventually gave his "blessing" to the Oracle-Walmart-TikTok deal "in concept," which was a big step towards keeping the app operational in the U.S.
Legal Bumps in the Road
The road to this deal wasn't smooth, and the government's attempts to ban TikTok faced immediate legal pushback. Various parties, including TikTok itself and some of its content creators, went to court to challenge the executive orders. In fact, a U.S. judge actually blocked the August 6 order that would have prevented new downloads of the app, casting doubt on the legality of the government's actions.
What's Next?
Even with the presidential sign-off on the proposed deal, it wasn't a done deal just yet. The plan still had to go through a rigorous review by the Committee on Foreign Investment in the United States (CFIUS), which is responsible for scrutinizing foreign investments for national security risks. Plus, the Chinese government also needed to give its blessing, adding another layer of complexity to the whole situation. It was a clear reminder that global tech deals often involve a lot more than just business negotiations.