Trump said the new company would be "completely under the control of Oracle and Walmart ... all control is Oracle and Walmart."
US President Donald Trump said he supports a deal that allows TikTok to continue operating in the US, after threatening to ban the China-owned app in August.
He told reporters at the White House that he supports the deal with owner of TikTok ByteDance, Oracle and Walmart to create a new company to take over US TikTok operations called TikTok Global.
"Oracle will be responsible for key technology and security responsibilities to protect all user data in the United States. Approval of the deal is subject to closure with Oracle and Walmart, the necessary documents and terms to be approved by the Committee on Foreign Investment in the United States," the US Treasury Department said in a statement.
The Commerce Department said Saturday that it will postpone by one week an order that was due to go into effect late Sunday that would prevent Alphabet Inc, Google and Apple Inc from offering TikTok in app stores in the US.
A person familiar with the matter said management had given the parties a week to close the deal.
US shareholders are expected to control 53% of TikTok Global, according to a person familiar with the matter, while Chinese investors will own 36%.
Oracle said it will acquire a 12.5% stake in TikTok Global.
Under the deal, TikTok said, Oracle and Walmart will participate in a pre-IPO TikTok Global funding round in which they could receive up to 20% of the cumulative equity in the company.
ByteDance will keep the remaining 80%, but it is not clear whether ByteDance shares in TikTok Global will be distributed to ByteDance investors upon establishing TikTok Global, according to the source.
American investors currently own about 40% of ByteDance.
TikTok stated that it is "pleased that the proposal submitted by TikTok, Oracle and Walmart will clarify the safety issues for the US administration and expose the problems associated with the future of TikTok in the United States."
TikTok said Oracle would become the "trusted technology provider for the company, responsible for hosting all user data in the United States and securing associated computer systems to ensure that the national security requirements of the United States are fully met."
Trump has shown strong support for the deal, which he said will create 25,000 jobs in the United States. "The deal gave me my blessing," Trump said. "I accept the deal in concept."
About 100 million Americans use TikTok, and US officials have expressed concern about user data and China's access to that data.
"Security will be 100%," Trump told reporters.
Reuters reported on Thursday that TikTok Global will have the majority of US directors, the CEO of the United States and a security expert on the board of directors.
ByteDance has agreed to significant security protections on US user data with Oracle that includes all data and has the right to inspect TikTok's source code.
Walmart did not immediately comment.
Trump this week expressed annoyance that government attorneys had told him that a "portion" of any TikTok sale price should not be requested to the Treasury Department.
He said there would be a US $ 5 billion education fund as part of the deal.
He said the new company was likely to be incorporated in Texas and had at least 25,000 employees.
Reuters reported on Thursday that ByteDance is planning a US initial public offering of TikTok Global. The sources, who asked not to be identified because it is a matter of confidentiality, said that the IPO filing for TikTok Global will be on an American exchange and could come in about a year.
A portion of the proceeds from the initial public offering is expected to be used to finance the $ 5 billion education fund, the source said. ByteDance .
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