TikTok sale to Walmart, Oracle stalls as Biden reviews security

WASHINGTON (REUTERS) – Oracle Corp and Walmart Inc’s plan to buy TikTok’s US operations has been pushed back indefinitely, as United States President Joe Biden reviews the previous administration’s efforts to address potential security risks posed by Chinese tech companies, the Wall Street Journal reported on Wednesday (Feb 10).

The administration of former president Donald Trump had cited national security concerns in its targeting of TikTok, arguing that the personal data of US users could be obtained by China’s government, while TikTok denies the allegation.

This comes as TikTok’s parent, ByteDance, finds itself in a legal tussle with the US government, with many federal courts barring the Commerce Department’s attempt to shut down TikTok’s operations in the US.

Discussions have continued between representatives of ByteDance and US national security officials, the WSJ report said, citing people familiar with the matter.

TikTok has been in talks with Walmart and Oracle since September to finalise a deal that would shift TikTok’s US assets into a new entity to prevent its total ban on use in the country.

TikTok, which has over 100 million users in the US, features a simple user interface, background music options and various special effects to help users make short-form entertaining videos.

TikTok, Oracle and Walmart did not immediately respond to requests for comment.

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