Oracle reportedly wins deal for TikTok’s US operations as ‘trusted tech partner’
Deal comes an hour after Microsoft’s failed attemptby Tom Warren
Oracle has reportedly won a deal to manage TikTok’s US cloud operations. Oracle had been rumored to be part of the bidding process to acquire TikTok, but The Wall Street Journal reports that the company has been selected as a “trusted tech partner” instead. This is different from an outright sale, and appears to suggest Oracle will be helping run TikTok’s US operations with its own cloud technologies.
News of an Oracle deal comes just an hour after Microsoft revealed it was no longer acquiring TikTok after its bid was rejected by TikTok owner ByteDance. Microsoft had been pursuing a deal to buy TikTok’s operations in the US, Australia, Canada, and New Zealand. It’s clear talks have swayed away from a full acquisition, with Oracle reportedly winning the bid to be a technology partner instead.
President Trump signed an executive order August 6th blocking all transactions with ByteDance, and the order demanded an American company purchase TikTok’s US business. The EO was intended to take effect within 45 days, although the president later signed a follow-up order giving ByteDance 90 days to sell or spin off TikTok in the US. This does not supersede the original deadline, though. As Department of Commerce secretary Wilbur Ross told The Verge: “Per the 45-day period outlined in the Executive Orders, the Department of Commerce is operating under a deadline of September 20th.”
Oracle has a history of collaboration with the US government, making its partnership with TikTok a strategic move amid the growing undercurrent of Chinese opposition running through the White House and Congress.
Update Monday September 14th, 9:10AM ET: Updated with a statement from Department of Commerce secretary Wilbur Ross confirming the September 20th deadline for the sale.