ByteDance picks Oracle as its ‘trusted tech partner:’ report
The deal won't be structured as an outright sale
by Aisha MalikEnterprise software giant Oracle has reportedly won the a deal to manage TikTok’s U.S. operations, according to the Wall Street Journal.
The company is set to be announced as TikTok’s new “trusted tech partner” in the U.S. The Wall Street Journal also notes that the finalized deal won’t be structured as an outright sale.
Oracle’s alleged deal with TikTok comes a few days before the Trump administration’s deadline for the company to either sell its operations or face a ban.
This report also comes as Microsoft has confirmed that TikTok’s parent company ByteDance has rejected its proposal.
“ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft. We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Microsoft said in a statement.
Microsoft was seen as the frontrunner for a deal and had partnered with Walmart in its bid for the popular social media app.
It’s unknown how a deal with Oracle will play out or be approved by the Chinese government, which recently implemented a new set of trade regulations. The move has widely been seen as a way for China to prevent a sale.
Reuters also recently reported that the Chinese government would rather see TikTok shut down its operations in the U.S. instead of selling them, so that ByteDance doesn’t appear weak in response to pressure from the White House.
ByteDance and Oracle have yet to make a public statement about the deal.
Source The Wall Street Journal