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TikTok sells U.S. operations to Oracle

Updated: Sep 16, 2020

TikTok operations in the United States will be taken over by Oracle according to The Associated Press and The Wall Street Journal. The announcement came after the rejected bid of crowd favourite Microsoft. Earlier this year, TikTok was forced to sell its U.S. operations by President Trump, due to government worries about user data being funneled to Chinese authorities.

TikTok has chosen Oracle as the American tech partner that will maintain the popular video-sharing app in the United States. Oracle is set to be announced as the trusted tech parter of TikTok in the U.S. and revealed that the deal wouldn't be structured as an outright sale.


Microsoft announced Sunday that its bid to acquire TikTok’s U.S. operations was rejected, removing the tech giant from the running a week before the Trump's promises to follow through with his plan to ban the Chinese-owned app in the U.S. over spying concerns. Walmart, which had planned to partner with Microsoft on the acquisition, said it “continues to have an interest in a TikTok investment” and is in continued talks with ByteDance. (Walmart and Microsoft team up for US bid for TikTok)


It’s not clear if the proposed deal will only cover TikTok’s U.S. business and how it will be split from the rest of TikTok’s worldwide platform. Luckily for Trump, the deal will be reviewed by the Committee on Foreign Investment in the United States, a U.S. government group chaired by the Treasury Secretary that studies mergers for national-security. Though Trump has already voiced support for Oracle as a potential buyer, calling it a “great company”.

 

Sources:

  • https://apnews.com/4e25c45894479d77fb4949b64673d92b

  • https://www.wsj.com/articles/microsoft-drops-out-of-bidding-for-tiktoks-u-s-operations-11600039821


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