It was announced that on September 20th, 2020, TikTok will be banned from the Android and iOS stores in the US. The TikTok app will not be downloadable after Sept 20th. Those who already have it on their phones will be able to use it but will not receive any updates. However, the outright restriction for TikTok will come on 12th Nov 2020.
TikTiok was initially looking at selling the US operations to an American buyer. Oracle did look like a promising buyer for the app. Now, the Tiktik’s ban in the United States has been put off for a week as a deal with Oracle and Walmart comes closer to being reached. The date is now being moved up to September 27 – which would see two companies take control of Tiktok’s operations in the country. Here are the key details of the deal that have been approved in the ‘concept’:
- ByteDance Ltd. (those who owned the app) is seeking a valuation of $60 billion.
- Oracle’s share 12.5% share
- Oracle and Walmart would combined pay $12billion
- A new company will be formed named TikTok Global
- ByteDance will have no decision making authority for the US company
- Oracle will be responsible for hospint all the US user data.
- Walmart’s Chief Executive Officer Doug McMillon will serve on TikTok Global’s board of directors.
- Four of the five board seats will be filled by Americans
- TikTok Global headquarters will be in Texas and will create thousands of jobs.
If the deal goes through, the app will remain for use in the US. If not, the app will be removed from all the US app stores. Other countries like Japan are considering a ban on TikTok too. Alternatives however have begun to pop up – Instagram with its Reels and YouTube with Shorts (available in India) –are some of them.
It’s yet to be seen whether the app will see a ban or not!
