Oracle announced that TikTok has chosen themselves as its technology provider for the management of assets in the US.
According to Reuters, not all of the US assets of TikTok, the video sharing application of Chinese technology giant ByteDance, will not be transferred to Oracle. In the news on Chinese state television, it was stated that the source code of the company was not for sale.
Earlier in the day, Tiktok announced that the company will transfer US rights to Oracle, an “old and trusted” technology partner, but will not share the source code of the software. In the statement, it was stated that the responsible technology team could develop a new algorithm.
Bytedance’s decision not to sell TikTok’s source code to US companies was influenced by Wang Wenbin’s statement that China supports the protection of the legal rights and interests of Chinese companies.
Bytedance also announced that Tiktok’s US operations could be stopped completely if the US does not lean towards this proposal.
After months of speculation about national security risks and users’ data being collected by the Chinese Communist Party, US President Donald Trump banned TikTok in the US earlier this year. Its use was already prohibited by the US military.
A number of outlets are reporting the deal, and Microsoft has confirmed that the deal isn’t working. Subsequent reports cast doubt on framing the deal as a sale, pointing to a partnership rather than a direct purchase.
According to Bloomberg, “A deal with Oracle is narrower and looks more like a corporate restructuring than a direct sale.”
US President Donald Trump announced on August 3 that they would ban the Chinese-based social media platform TikTok on September 15 if its US arm is not sold to any American company.
In a statement made by Microsoft, one of the leading technology companies in the USA, on the same day, it was stated that negotiations were made for the purchase of the US arm of the TikTok application belonging to the Chinese company ByteDance.
In the statement, it was stated that the application was negotiated to make an agreement to purchase the services in the USA, Canada, Australia and New Zealand and the right to operate in these countries.
Finally, Trump stated that the time given to TikTok until September 15 will not be extended, “We will either close Tiktok in this country for security reasons, or this application will be sold to another US company.” he said.
Given that the divestment of the US was due to concerns about Chinese espionage, the irony will not be lost in the students of IT industry history: Oracle started life as a project at the US Central Intelligence Agency.
According to Reuters sources, Oracle now looks ready to become a technology partner of TikTok with Chinese mainstream ByteDance and will take over the management of TikTok’s US user data.
Partnership regulation rather than selling directly to a US company could save TikTok from the US ban, while also relieving the Chinese government that has threatened to shut down the video sharing app instead of making it part of a forced sale.
It is unclear whether President Donald Trump, an ally of Oracle president Larry Ellison, will approve the deal, also monitored by a US foreign investment review panel. For the Oracle deal to work, Trump will have to cancel his original order, specifically calling for the disposal of TikTok.
R “Ray” Wang, principal analyst at Silicon Valley-based Constellation Research Inc, says the Oracle deal is a hit for the cloud giant, giving it another big workload, a “once in a lifetime” opportunity and technology to build an ad network. diplomacy in the growing US-China trade wars.
“Oracle’s ability to win TikTok is a blow to the cloud front, the adtech front, and the geopolitical business zones,” Wang writes in a company blog post.
“With more than 80 percent of the top 20 ad networks, portals, creative optimizers, trade desks and ad brokers leveraging data from the Oracle Data Marketplace, TikTok builds on that leadership.”
According to Wang, TikTok could be the piece that allowed Oracle to challenge the digital giants of Facebook, Google, and Amazon.
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