Walmart and Oracle have received tentative approval from the government to acquire 20% of the newly formed TikTok Global business, which will be responsible for providing all TikTok services in the U.S. and most of the rest of the world. The deal also makes Oracle TikTok’s secure cloud provider, while Walmart will bring its omnichannel retail capabilities to the platform.
Walmart’s contributions will include the Walmart.com assortment, its e-Commerce marketplace, plus fulfillment, payment and measurement-as-a-service advertising service. Walmart previously expressed interest in TikTok when it joined Microsoft to make a bid for the social network in the U.S.
Additionally, TikTok Global will work with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue in an educational initiative designed to develop and deliver an AI-driven online video curriculum. The charity will offer a variety of courses, from basic reading and math to science, history and computer engineering.
TikTok Global will be an independent American company, majority owned by American investors, and four of the Board of Directors’ five members will be Americans. The business will launch an IPO in less than 12 months with the goal of further increasing U.S. ownership., and the new company is expected to create more than 25,000 jobs in the U.S.