We bring good news for US TikTok lovers! In the race for banning or buying TikTok, it appears as if Oracle will partner with ByteDance in managing US operations, resulting in the prevention of a TikTok ban in the US. “Oracle confirms Secretary Mnuchin’s statement that is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider,” Oracle said on Monday, September 14th.
— Maria Bartiromo (@MariaBartiromo) September 14, 2020
Oracle confirmed they have struck a deal with ByteDance, the Chinese owned company that owns and operates TikTok. ByteDance has chosen Oracle over Microsoft to help run all US TikTok operations. This partnership is meant to calm the fears of the Trump administration regarding the app’s security threats and ties to the Chinese government.
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On August 6th, Donald Trump signed an executive order to shut down TikTok in the US if ByteDance does not sell all US operations for the app. Donald Trump has stated that ByteDance has until around November of 2020 to decide if they will sell or fold. The news of Oracle’s deal emerged shortly after TikTok’s move to sue the US government for the upcoming TikTok ban in the US.
But what is the problem with TikTok? Well, TikTok is a controversial subject at the moment, as the Chinese owned company ByteDance is at odds with the United States due to TikTok’s potential security threat. The argument is that ByteDance has the potential to collect reams of user data on TikTok that can be used by China’s ruling Communist party against the United States’ interests.
However, TikTok claims that they do not share user data with the Chinese government. Learn more about the recent series of events, including the TikTok CEO resigning.
There were many rumors that various corporations were interested in buying TikTok. Given that TikTok has over 100 million monthly active users in the United States, the app appealed to some big-name companies such as Microsoft and Walmart. Microsoft went as far as to offer a bid that was rejected, putting Microsoft out of the race for buying TikTok. In the end, it seems as if Oracle came out on top in the race to “buy” TikTok.
NEWS: A source directly familiar with the deal tells me that Oracle has been chosen to acquire TikTok US as the technology partner.
— Jo Ling Kent (@jolingkent) September 13, 2020
However, it appears as if this deal is a partnership with ByteDance rather than a sale. Despite the many months of ownership debates and generous bids, it remains unclear as to what Oracle’s partnership status will entail. It is speculated that Oracle will not have a sufficient amount of control on US operations, in which case the US government may not approve the proposal.
This deal proposal is not final yet, it still needs approval from the US government. We will find out what amounts from this deal by the end of the week, as Oracle’s proposal for buying TikTok US operations will be reviewed this week by the US government.
Regardless of the controversy behind the app, one thing is certain: Oracle might just save TikTok in the US if their proposal to partner with ByteDance is approved. If Oracle’s proposal to buy TikTok is approved, you can expect US TikTok to stick around for longer than we had anticipated!
Learn what led to this potential ban in our blog about TikTok banned in India.