Oracle To Partner With TikTok To Run US Operations As Microsoft Bid Flops


Oracle has won a deal that will see it manage TikTok’s US operations. The Wall Street Journal has reported that the company has been selected as a ‘trusted tech partner’ as opposed to acquiring the company’s US operations in full. The deal will reportedly see Oracle help TikTok run the US operations using their own cloud technology.

Details of the deal have just emerged after Microsoft announced that it was no longer acquiring TikTok after ByteDance rejected their offer.

Microsoft was considered the frontrunner in the acquisition of the Chinese owned company after they started their negotiations way before US President Donald Trump issued a notice to ban TikTok’s operation in the country.

Trump cited security concerns amid claims that the app was gathering data from US citizens which he believed could be shared with the Chinese government.

Read: Oracle Joins List Of Bidders Interested In Acquiring TikTok

The new deal shows that the talks moved away from a full acquisition despite a number of bids from US companies including Microsoft and Twitter. Microsoft had proposed to acquire the operations in the US, New Zealand, Australia and Canada.

Trump signed an executive order giving ByteDance 90 days to make a deal or face the ban. The popular Chinese app operators were reportedly not happy about the pressure from the US President to sell the business.

Oracle is said to have a long history collaborating with the US government. This means the deal could be a strategic move for TikTok to stay in good books with the White House and Congress, amid growing tensions between the US and China.