US TikTok Goes to Oracle
Oracle Beats Out Microsoft & Walmart for Social Media Giant
Deal Needs Trump Administration Approval
TikTok, the popular short form video app, and US headquartered software giant Oracle have reached a "partnership" deal. The Trump Administration forced China based owner ByteDance to sell its TikTok US assets. In cutting a deal with Oracle, ByteDance has rejected offers from Microsoft and Walmart. Details on the purchase price and exact terms of the Oracle deal have not been released. The Trump Administration forced a sale of TikTok's US operations because the Chinese government can ask ByteDance to hand over personal data gathered on Americans by TikTok at any time.
Why This Social Media-High Tech Deal Matters
This deal matters because TikTok has more than 100 million active users in the US; 800 million globally. If the deal goes through, it would give Oracle, which is a software provider to large enterprises, much more visibility before young consumers. It would also provide Oracle with a huge advertising platform and enable Oracle to significantly expand its cloud business. For TikTik, it would enable it to continue doing business in the US.
The deal faces hurdles including Trump Administration, China President Ji and Congressional committee approvals. Oracle has just presented Treasury Secretary Steve Mnuchin with a "partnership" proposal in which ByteDance calls Oracle a "trusted technology provider". Mnuchin says he will review the deal this week. He says he wants to make sure that American data would be secure and that the "code and phones are secure." He expects to talk with Oracle this week.