TikTok Decides To Partner With Oracle Instead Of Perceived Front Runner Microsoft | MSNBC
TikTok and Oracle agree on a business partnership
TikTok and Oracle will become US business partners. The deal aims to appease the Trump administration about its fears of a threat to national security.
The exact nature of the agreement between TikTok and Oracle not yet known, however, this is probably «cooperation», not a direct sale. This information came immediately after Microsoft announced that it would not buy the American part of the TikTok business from ByteDance..
ByteDance, TikTok and Oracle have not yet commented on the situation.
The Chinese social network was the first such project to gain immense popularity among users outside of their home country. In the first three months of this year, the app was downloaded 315 million times. TikTok has broken an all-time record for quarterly downloads, analyst firm Sensor Tower reports..
However, Trump and other American politicians said the app poses a threat to national security because it could be used by Beijing as an espionage tool..
TikTok denies all allegations. The company said its data centers are located outside of China and are not subject to Chinese law.
The agreement with Oracle was concluded a few days before how it was planned to introduce a ban on TikTok in the USA. After September 20, the Commerce Department is expected to clarify which types of business transactions involving TikTok will be banned in the country, according to Trump’s decree signed on August 6..
It’s unclear if TikTok’s partnership with Oracle will prevent the video app from getting banned.. The wording of the decree, along with Trump’s personal remarks about TikTok, have led to confusion about how exactly the ban will be implemented.. In another executive order, the president said that TikTok has until November 12 to find a buyer..
The company contacted to the Federal Court and seeks a court decision to suspend the order of August 6. Hearing on the case is scheduled for next Tuesday. TikTok has also sued the Trump administration over one of its decrees, calling it «completely politicized».
The exact details of the agreement between TikTok and Oracle are still unknown. but experts pointed to other partnerships between US and foreign companies that were approved by the authorities.
When the Japanese tech conglomerate SoftBank acquired 78% stake in Sprint in 2013, both companies agreed to several terms to address national security concerns. Sprint’s new board member appointed to oversee national security compliance. The U.S. Departments of Defense, Homeland Security, and Justice have also been given the power to review and veto deals for certain types of equipment..
«An intermediary organization may be created to investigate ByteDance’s relationship with TikTok. The agreement could also include restricting access to ByteDance information or including approved Americans on the company’s board of directors.», – considers James Lewis, Senior Vice President, Center for Strategic and International Studies, a think tank based in Washington.
Oracle’s victory is a blow to Microsoft, which has been hunting TikTok for over a month. Many analysts described Microsoft’s fight over TikTok as a potential «coup» — the ability to capture one of the fastest growing social media platforms in the world.
«We are confident that our offer would be useful for TikTok users. To do this, we were ready to make significant changes to ensure that the service meets the highest standards of security, privacy, reliability on the Internet and the fight against disinformation. We have laid out these principles clearly in our August statement», – said in a message from Microsoft.
Walmart also participated in negotiations with Microsoft about a possible deal. The retailer told CNN Business on Sunday that «continues to show interest in investing in TikTok and has not terminated negotiations with ByteDance management and other interested parties».