Treasury Secretary Steven Mnuchin said on Monday the Trump administration received a proposal from Oracle Corp over the weekend to make TikTok a US-headquartered company and will review the plan this week.
Bytedance, which owns the short video app, currently runs its US operations out of Culver City in LA County, California and the Chinese-owned company was given a September 20 deadline to sell to an American company due to data concerns.
It emerged Sunday that Oracle won the bid over Microsoft but that the deal was a restructuring to having a ‘trusted technology partner’ rather than an outright sale.
In a TV interview Mnuchin said tens of thousands of jobs would be come from the new deal, which is yet to be signed off by the Trump admin.
Scroll down for video
Treasury Secretary Steven Mnuchin said on Monday that the Trump admin will review a deal for Oracle to be TikTok’s ‘trusted technology partner’
Mnuchin told MSNBC on Monday: ‘There’s also a commitment to create TikTok Global as a US headquartered company with 20,000 new jobs.’ Pictured: The TikTok office in Culver City, California
President Donald Trump supporter Larry Ellison co-founded Oracle Corporation in 1977 and it now has 136,000 employees. Pictured: An exterior view of the Oracle Field Office in Arlington, Virginia
‘I want to be careful what I say, but I will confirm we did get a proposal over the weekend that includes Oracle as the trusted technology partner, with Oracle making many representations for national security issues,’ Mnuchin told MSNBC.
‘There’s also a commitment to create TikTok Global as a US headquartered company with 20,000 new jobs.’
President Donald Trump supporter Larry Ellison co-founded Oracle Corporation in 1977 with Bob Miner and Ed Oates. It now has 136,000 employees.
In February 2020, Ellison hosted a Trump fundraiser at his Rancho Mirage home where tickets cost up to $250,000 to attend.
According to Forbes, Ellison, has a net worth of $72billion and is the fifth richest person in the US.
In August, Trump threatened to ban TikTok if there wasn’t a sale to a US company in 45 days.
US officials criticized the app’s security and privacy, suggesting that user data might be shared with Beijing. TikTok has said it would not comply with any request to share user data with the Chinese authorities.
President Donald Trump previously threatened to ban the Chinese-owned app if there wasn’t a sale to a US company by September 20 but the new deal isn’t an outright sale
Microsoft was believed to be the front-runner but then the sale process became more complicated after revisions to a technology exports list on August 28.
Reuters previously reported that TikTok’s prospective buyers were discussing four ways to structure an acquisition from ByteDance and that within these, ByteDance could still push ahead with a sale of TikTok’s US assets without approval from China’s commerce ministry by selling them without key algorithms.
It was unclear if General Atlantic and Sequoia Capital, both of which were previously reported to have spurred on the Oracle deal, ended up being a part of this agreement with the cloud-computing operations company.
‘We have a lot of confidence in both Microsoft and Oracle, they’ve chosen Oracle, we’ll be reviewing it with their technical teams and our technical teams to see if they can make the representations’ to keep data on American phones safe, Mnuchin told CNBC television.
‘We can confirm that we’ve submitted a proposal to the Treasury Department which we believe would resolve the Administration’s security concerns,’ TikTok spokeswoman Hilary McQuaide told the Washington Post.
Following Mnuchin’s interview Oracle spokeswoman Deborah Hellinger confirmed also confirmed 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.’
Oracle stocks climbed 4.32% to $59.46 after it was confirmed that the business software maker beat out Microsoft to become the ‘trusted technology provider’ of TikTok.
Oracle climbed 4.32% to $59.46 after it was confirmed that it beat out Microsoft to become the ‘trusted technology provider’ of TikTok