Oracle announces TikTok Global minority investor after Trump signs approval - Early Saturday, an agreement was announced that would give Oracle a minority stake in the global TikTok business and has received approval from President Donald Trump, clearing the way for the popular video app to continue operating in the United States.
The software company announced in a statement that it has taken a 12.5% stake and has become the application's secure cloud technology provider.
In a statement, TikTok confirmed the news and also commented that he is also working with Walmart in a commercial partnership.
"Both companies will participate in a pre-IPO financing round of TikTok Global, in which they will be able to take up to 20% of their accumulated stake in the company," the company says. "We will also maintain and expand our company's headquarters in the United States, while creating 25,000 jobs nationwide."
Walmart also confirmed in a statement Saturday night that it " has provisionally agreed to purchase 7.5% of TikTok Global, as well as enter into trade agreements to provide our trade, compliance, payments and other omni-channel services."
The statement added that "there was still work to be done on the final agreements," and that Walmart CEO Doug McMillon will be one of the 5 board members of the newly created company.
The deal suffered a setback on Friday when the Trump administration, allegedly dissatisfied with the terms of the contract, ordered a ban on U.S. downloads of TikTok and WeChat, another popular China-based chat and commerce app.
Oracle announces TikTok Global minority investor
But the deal has finally received Trump's approval on Saturday. In fact, he told reporters at the White House that he had given his "blessing" to the pact.
The agreement puts an end to weeks of uncertainty over TikTok's fate in the United States. The Trump administration, which has claimed that the app violates the privacy of U.S. citizens, has ordered it to close unless it is sold to a U.S. entity.
For TikTok, the agreement signifies a new phase in its meteoric growth in the United States, where the app is popular with millions of users, particularly teenagers.
For Oracle, the deal is seen by many experts as a bold and surprising move. Oracle is an enterprise technology powerhouse that manufactures software and hardware used by companies, including large corporations, to operate their networks.
Oracle has also launched an aggressive campaign to expand its presence in enterprise cloud computing technology, where it faces tough competition from stronger rivals led by Amazon, Microsoft and Google.
The agreement with TikTok is expected to boost this effort.
The hosting of the platform, a widely used and fast-growing video application with about 80 million users in the United States, is considered a major customer gain for Oracle. Experts say it would help raise your profile in cloud computing, especially after the recent agreement with the popular Video Zoom platform.
Initially, amid speculation that Oracle would acquire TikTok, experts have said owning the platform would give Oracle access to huge amounts of data it could use to boost its marketing-oriented cloud-based services.
End of Oracle announces TikTok Global minority investor
Fashion brands trust TikTok to showcase their new products by creating their own’ fashion month ' that Yves Saint Laurent and Louis Vuitton have already signed up for
From the former catwalk Cibeles, today Mercedes-Benz Fashion Week Madrid, to the most anticipated event to meet the new fashion of brides, the Barcelona Bridal Fashion Week, the platforms for the promotion of fashion seek formulas that allow them to approach their potential consumers, a challenge that is exacerbated in times of COVID but also with new habits and, even, of new audiences.
It is September, traditionally the month of fashion, big fashion shows and the considered’ bible of the season ' Vogue collections. But something is changing, and not just for the coronavirus, which too.
To the difficulty of brands and designers to launch collections and parades, to the ingenuity of developing fashion films or multidisciplinary shows to capture the attention is added a new generation of buyers who have their own tastes and habits.
Generation Z, those born from the mid-90s, do not seem interested in running to occupy the most coveted sites of the frontrow-front row -. Digital natives and accustomed to interact through social networks, prefer a direct contact with brands, more natural, more interactive, more democratic, perhaps.
Of course, you have to be where they are. In this sense, quarantine has left some evidence that can be summed up in one word: TikTok. Surely the social network that has experienced the greatest growth in the quarantine - currently has 800 million users - the fashion industry has turned its eyes to it to show its news. And the platform has reacted by creating its own fashion month or #TikTokFashionMonth.
Already in progress, this particular Month's Fashion TikTok will run until October 8 and will, according to a press release from the company, so valuable that it has been the subject of a trade dispute between China, its country of origin, and the USA, discover the new collections in real time and as if you were in the first row.
The support of luxury designers such as Saint Laurent, JW Anderson and Louis Vuitton attests to their potential.
“We've seen the fashion industry reinvent what luxury fashion means to culture and society through TikTok by bringing fashion to our community's homes during the quarantine” " explains CeCe Vu, fashion content manager at TikTok.
With the launch of Fashion Month “" we offer an immersive Virtual Fashion Month experience for our community and we're excited to see how they engage with each proposal” " she says.
On September 28, for example, Jonathan Anderson, founder and creative director of the firm JW Anderson, will unveil his collection of women's clothing for the spring - summer 2021 season.
On October 8, another of the most anticipated shows will take place, christened as ‘TikTok Runway Odyssey’. Organized by musician Nick Tangorra and in collaboration with sportswear firm Puma, the event will consist of a live virtual catwalk where you will also see the designs of Alice + Olivia.
For the latter's executive director, Stacey Bendet “ " TikTok is an amazing and innovative platform for creative expression that merges the worlds of fashion, music, art and design.” What she values most is “the creativity it gives brands in terms of sharing our clothes and connecting with our customers." Alongside the platform, the fashion firm has created a capsule collection that will allocate a portion of its profits to support inclusion and diversity. The collection has also involved creators such as Melaine and Miranda Wilking, Janette Ok and Bria Jones.
Born as a video platform in which young people showed dances and choreographies, first models, prescribers, bloggers and then designers and brands have gone on the trumpet in TikTok, where artists like Lizzo, Justin Bieber, Jennifer Lopez and Miley Cyrus are already moving like fish in the water; models like Gigi and Bella Hadid; or influencers like Chiara Ferragni, all of them very attached to fashion.
Brands have seen in it a new formula for presenting their proposals. Firms such as Calvin Klein, Burberry and Balmain were among the first to open an account on this platform, followed by others such as Dolce & Gabbana and Celine.
One hundred million monthly users represent a more than interesting audience and, while testing the effectiveness of the new formats, they also learn how to bring luxury to Generation Z.
In the game is also Instagram, the other big social network most aligned with fashion. Of perhaps more careful aesthetics, the differences however go far beyond. While more traditional and, above all, carefully selected and edited images and videos are shared here, TikTok is the perfect place for the most authentic, creative and casual videos.
In the words of TikTok's head of communication, Lauren Jenkins, on the platform " people feel really comfortable sharing their true self, from personal style to fashion."
The latter, moreover, has tools to generate more powerful links between users and brands thanks, in part, to the successes of its challenges, but also to the immersive experience.
Of course, there is also a lot of money at stake. Despite the average age of a TikTok user (69% are between 13 and 24 years old), their spending potential is enormous, with great influence especially on their parents ' spending decision. In this sense, winning the favor of Generation Z may possibly be the best investment brands can make.