Oracle Corp. won the bidding for the U.S. operations of the video-sharing app TikTok 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.
Bytedance owned by TikTok has chosen the oracle instead of Microsoft for the deal. With this deal, this popular app in the US can remain in the trend.
It looks like that Oracle is the winner
Microsoft coming out with a statement saying that ByteDance rejected its bid for the company. But it’s still unclear what exactly Oracle’s partnership with TikTok is going to look like. It doesn’t look like an acquisition. Meanwhile, there is a Chinese news service, Caixin, that is reporting that Walmart will still be working with TikTok in some capacity in China. Dan Howley, what do we make of all of this back and forth, Oracle being the winner of a sort?
We did get a proposal over the weekend that includes Oracle as the trusted technology partner with Oracle making many representations for national security issues. There is also a commitment to create TikTok global as a U.S. headquartered company with 20,000 new jobs. The Committee on Foreign Investment in the United States, will be reviewing the offer this week and then we will be making a recommendation to the President and review it with him.Mnuchin – CFIUS.
Oracle confirmed Secretary Mnuchin’s statement that it 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 has a 40-year track record providing secure, highly performant technology solutions.
Oracle shares had been up sharply Monday morning on the Sunday reports of a deal and had been halted for trading on pending news addressed by the company’s statement.
Walmart, which has also been engaging with TikTok, still wants to be part of the process.
Walmart continues to have an interest in a TikTok investment and continues discussions with ByteDance leadership and other interested parties. We know that any approved deal must satisfy all regulatory and national security concerns.Walmart Statement