TikTok sale to Oracle and Walmart shelved as Biden reviews security, say reports

Oracle and Walmart’s plan to buy TikTok’s US operations has reportedly been pushed back indefinitely, as the US president, Joe Biden, reviews the previous administration’s efforts to address potential security risks posed by Chinese tech companies.

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

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It comes as TikTok’s owner, 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 Wall Street Journal reports, citing people familiar with the matter.

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

TikTok, which has more than 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 Reuters’ requests for comment.