President Donald Trump said has has given his stamp of approval “in concept” on the Oracle bid for the U.S. operations of the wildly popular social media app, TikTok, according to a report from Bloomberg.
According to the Bloomberg report Trump said, “I have given the deal my blessing,” as he left the White House for a campaign rally in North Carolina on Saturday.
“I approved the deal in concept,” Trump reportedly said.
The spinout of TikTok’s U.S. operations from its parent company Bytedance was something that Trump administration had demanded on the grounds that the company’s data handling policies and popularity in the U.S. posed a national security threat.
The President’s push to sever the applications ties to China also followed TikTok users’ alleged prank that turned what was supposed to be a triumphal rally for the President in Oklahoma City into a Presidential campaign embarrassment that cost the job of Trump’s campaign manager, Brad Parscale.
That said, the U.S. has been looking to curtail the operations of several Chinese technology companies on the grounds that they pose security threats to the U.S. Indeed, the Presidential order that demanded TikTok’s spinout also called for the discontinuation of operations of the messaging service WeChat, which is owned by Tencent — one of China’s largest technology companies. And the U.S. government has also put a target on the telecommunications and networking technology developer, Huawei.
With the TikTok deal set to be approved, a new company called TikTok Global will be created as part of the deal, according to statements from Treasury Secretary, Steven Mnuchin, earlier this week.
Bloomberg reported that Trump said the new company would be headquartered in Texas, would hire as many as 25,000 people and would contribute $5 billion toward U.S. education.
The bulk of TikTok’s U.S. operations are now in Los Angeles.