Oracle wins bid to operate TikTok in the US
Oracle has recently won the bid for operating TikTok in the United States, making the latter its technology partner.
According to the report from Bloomberg, TikTok’s parent company ByteDance has chosen Oracle since its deal is “narrower, appearing more like a corporate restructuring than an outright sale.” Oracle is backed by Sequoia Capital.
The report also says that the acquisition valued at USD 25 billion before Chinese authorities imposed new rules on technology exports. Unlike Oracle, Microsoft was not ordered to make revisions for its final proposal.
TikTok is currently the leading customer of cloud services Amazon Web Services and Alphabet Inc.’s Google.
Previously, Microsoft has shared its intent to operate TikTok in the United States, as well as in other countries. However, the tech company has announced that parent company ByteDance has rejected the deal.
TikTok and Oracle are still discussing the terms of the deal.
Last month, US President Donald Trump issued an executive order that prohibits all transactions to ByteDance, TikTok’s parent company. The ban also includes ByteDance’s subsidiaries. The effectivity of the ban takes in effect after 45 days but President Trump has signed a follow-up order which gives the company a total of 90 days to sell TikTok in the US.
ByteDance originally plans to either sell a stake in TikTok’s operations or restructure the company, building a global headquarters with a board of directors outside of China.
According to the same report, TikTok intends to bring a proposal to the White House ahead of a mid-September deadline imposed by U.S. President Donald Trump.