Oracle Beats Microsoft to Own TikTok US
Oracle Corp. won the bidding for the U.S. operations of the video-sharing app TikTok, people familiar with the matter said, beating out Microsoft Corp. in a high-profile deal to salvage a social-media sensation that has been caught in the middle of a geopolitical standoff.
Oracle is set to be announced as TikTok’s “trusted tech partner” in the U.S., and the deal is likely not to be structured as an outright sale, the people said….Wall Street Journal
It comes a week before President Donald Trump promises to follow through with a plan to ban the Chinese-owned app in the US.
US officials have criticized the app’s security and privacy, suggesting that user data might be shared with Beijing. TikTok has said it would not comply with any request to share user data with the Chinese authorities.
Oracle will handle TikTok’s US user data, the source added.
The deal will be structured not as a sale but as a restructuring, the source said, without disclosing how much of TikTok’s US operations ByteDance and its investors will continue to own.
It was unclear if General Atlantic and Sequoia Capital, both of which were previously reported to have spurred on the Oracle deal, ended up being a part of this agreement.
Microsoft said in a Sunday statement that TikTok’s parent company, Bytedance, ‘let us know today they would not be selling TikTok’s US operations to Microsoft.’
‘We are confident our proposal would have been good for TikTok’s users, while protecting national security interests, ‘the company said in a statement.
‘To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas.’Microsoft
Reuters reported on Friday that Beijing opposes a forced sale of TikTok’s US operations and would prefer to see the short video app shut down in the United States, three people with direct knowledge of the matter said.
Chinese officials believe a forced sale would make both ByteDance and China appear weak in the face of pressure from Washington, the sources said, speaking on condition of anonymity.
The good thing is that for all those Kenyan TikTok users, you can continue using the app to market your brand and services.
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