TikTok could soon be based in Texas through a newly proposed deal that President Donald Trump supports.
According to the Associated Press, Trump said Saturday he’s given his “blessing” to a proposed deal between Oracle and Walmart for the U.S. operations of TikTok, the Chinese-owned app that he's targeted for national security and data privacy issues.
Trump also said the proposed deal would result in a company likely headquartered in Texas
“I have given the deal my blessing,” he said. “If they get it done, that’s great. If they don’t, that’s OK too.”
On Twitter, Gov. Greg Abbott said he spoke with Trump about the TikTok deal, and shared his support for Texas being the base.
"I let him know that if he approves the deal Texas would be the perfect place for the HQ," Abbott's tweet read in part. "We’ll see."
In the AP article, Trump said the new company will hire at least 25,000 people and making a $5 billion contribution to a fund dedicated to education for Americans.
“That’s their contribution that I’ve been asking for,” he said.
“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. Administration and settle questions around TikTok’s future in the U.S.,” TikTok said in a statement.
TikTok said both Oracle and Walmart will take part in a financing round where they can take up to a 20% cumulative stake in the company. The deal will make Oracle responsible for hosting all TikTok’s U.S. user data and securing computer systems to ensure U.S. national security requirements are satisfied. TikTok said it’s also working with Walmart on a “commercial partnership” but gave no other details.
Representatives from Oracle and Walmart could not be immediately reached for comment late Saturday.
Trump has recommended that TikTok, a popular music and video app among youth, be sold to an American company or its operations in the U.S. would be shutdown, according to AP.