The deal between Oracle and ByteDance came an hour after Microsoft announced that TikTok owner ByteDance would not be selling it to the software giant and because reportedly Oracle had a better offer.
Oracle has reportedly won the agreement to control TikTok’s US cloud operations. The company was part of the bidding process in order to obtain TikTok for US based operations.
But according to Wall Street Journal reports, the Oracle company has been selected as a “trusted tech partner” as an alternative. Having a trusted tech partner is different from an outright sale. As a trusted tech partner Oracle will be helping to run TikTok US operations with its own cloud-based technology.
The much-awaited news of an Oracle deal came out an hour after Microsoft revealed it will no longer participate to acquire ByteDance’s video sharing application TikTok, after the bid was rejected by ByteDance owner.
From day one it was reported that Microsoft is planning to buy TikTok’s operations in US, Canada, New Zealand and Australia. Now it is very clear that talks have been moved away from full acquisition as Oracle reportedly grabbing the bid to be a technology partner instead.
The United States President Donald Trump signed an executive order on August 6th which blocked all kinds of transactions to ByteDance. Furthermore, it was also added in the executive orders that a US based company purchase the TikTok’s US based business. Initially, through executive order, President Trump gave 45 days, but later on, it was stretched to 90 days by Donald Trump giving another 45 days to ByteDance to sell or spin off TikTok in the US.
That order was a result of an investigation of the company by the Committee on Foreign Investment in the US (CFIUS), which oversees foreign acquisitions of US companies for any potential security risks.
Oracle is strongly attached with US government as it has collaboration on different projects. TikTok Oracle deal is a strategic move among the growing undercurrent of Chinese opposition running over White House and Congress.