Oracle Moves to Make Deal With TikTok

09.14.20 - TikTok and Oracle are preparing to become partners in the United States as a deal has been struck to satisfy national security concerns raised by officials in the US government. An executive order was signed last month seeking to ban TikTok in the United States and require that the companies US operations be separated from its Chinese parent company, ByteDance.

The details of the agreement between TikTok and Oracle have not been reported, but it is reasonable to assume that this is not an outright sale. This news arrives just after Microsoft, who was heavily rumored to be seeking to acquire TikTok’s US operations, announced that they would not acquire the company from ByteDance.

"We are confident our proposal would have been good for TikTok's users, while protecting national security interests," Microsoft announced recently. "To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement."

The agreement comes a day before the ban was scheduled to go into effect. The Commerce Department in the States is to announce what operations involving TikTok will and will not be prohibited within the country on September 20th, according to the executive order that was signed. It is not yet clear at all though whether this partnership with Oracle would even allow the form video app to avoid this ban.

Source: Wall Street Journal