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Lewis said Walmart is hoping some of those eyeballs will now buy stuff at Walmart's online store, a gamble aimed at giving Amazon a run for its money.

Most of them are young consumers who spend hours on TikTok, mesmerized by the app's addicting algorithm, which is without peer in Silicon Valley. Through this deal, Walmart can tap a user base of some 100 million users in the United States. The retail giant's CEO, Doug McMillon, will sit on the company's board.

Walmart also a big winner in Trump's TikTok deal Whatever Trump's motivation in picking Oracle, the deal is incontestably a shot in the arm for the Silicon Valley stalwart. 'And the White House accepting such a deal would demonstrate that this exercise was pure grift.'

YOU SMOOZE THEM AND MAKE THE DEAL TRUMP CODE

'A deal where Oracle takes over hosting without source code and significant operational changes would not address any of the legitimate concerns about TikTok,' Stamos said. company to another? I don't see how that materially changes anything.'įacebook's former chief security officer Alex Stamos noted on Twitter that with TikTok's all-powerful algorithm still in ByteDance's hands, the agreement can only do so much. 'So this deal is moving the data from one U.S. user data on Google Cloud servers.īut this doesn't really resolve any issues related to security, says Kirsten Martin, professor of technology ethics at the University of Notre Dame. A TikTok employee not authorized to speak publicly told NPR that TikTok currently stores U.S. Oracle, which sells databases and cloud space to companies, is a laggard in the cloud storage wars, having been far outpaced by Amazon, Microsoft and Google. Oracle will become TikTok's cloud provider and hopes that this will provide a much-needed boost for that business. Oracle saw this as a way to boost its marketshare.' 'The only reason Oracle got involved was to help their cloud business.

'This may have ended with good news for Oracle, but it started well before they were in the picture,' Lewis said. Lewis, who had been in communication with several of the companies angling to strike a deal, does not side with this analysis. It's Chief Executive Safra Catz served on Trump's 2016 transition team.įrom afar, Trump's TikTok deal could look like nothing more than a shakedown that ended with a business, that is aligned with the president, winning a lucrative stake in one of the most successful apps in the world right now. Larry Ellison, Oracle's Chairman and founder, is an ardent supporter of Trump and has raised money for the president. Oracle has close ties to the president, and some say it's one reason why it beat out a deep-pocketed and well-positioned rival such as Microsoft. It's a win for Trump supporter: Oracle founder Larry Ellison 'It's not any of the various options the administration floated over time.' 'I'm a little surprised at how far they were willing to go to settle,' said former State Department official Jim Lewis, who studies technology policy at the Center for Strategic and International Studies, a think tank. Yet the most serious one seems to have been made by the White House, despite the president's proclamations, experts say.

YOU SMOOZE THEM AND MAKE THE DEAL TRUMP SOFTWARE

The newly-formed TikTok Global will have an ownership structure where software company Oracle and Walmart will jointly command 20% and 80% stays in ByteDance's grip.īoth sides made concessions. The agreement, however, does not remedy the Chinese-ownership problem. and 'will have nothing to do with China,' the president said. A new company would be incorporated in the U.S.

And so, a review of TikTok's data privacy and security appeared reasonable.īut on Saturday a striking thing happened: Trump took a victory lap for signing off on a last-ditch deal to rescue TikTok, boasting that the China problem had been solved. But national security experts on both sides of the aisle in Washington agreed that China's authoritarian regime is untrustworthy and has almost unfettered access to private business in the country. The White House never offered any real proof to support its fear that TikTok is a Chinese surveillance tool.

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So the president repeatedly declared that TikTok needs to free itself from ByteDance's control, or be shut down in the U.S. Trump's logic went something like this: Since TikTok's corporate parent company ByteDance is headquartered in Beijing, TikTok could be used as an arm of the Chinese Communist Party to spy on American citizens or cause other mischief. Since July, President Trump has turned a wildly successful viral video app TikTok into his favorite punching bag. Sheldon Cooper/SOPA Images/LightRocket via Getty Images companies Oracle and Walmart to keep TikTok alive, but the agreement does not accomplish what the president sought to achieve. President Trump said he approved a deal struck with U.S.

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