TikTok will soon be joining forces with Oracle, a new deal confirms. Parent company ByteDance has been negotiating the deal with US-based companies to avoid the ban in the country for days now. While Microsoft has been one of the strong contenders, ByteDance has decided to partner with Oracle – in a bid to please both the US and Chinese governments.
TikTok US Now under Oracle
Under the new deal, Oracle will be the technology partner for ByteDance and will also be the lead manager for TikTok operations in the US. The insides of the deal are unclear yet. For one, we don’t know if TikTok and Oracle’s partnership would mean that Oracle would also take a majority ownership stake in the popular short video app. For now, neither ByteDance nor Oracle has given any official statements.
Looking back, the Trump administration had issued a presidential order to ban all transactions and operations of Chinese-owned companies: namely ByteDance, Tencent, and others. With the deadline ticking, ByteDance had to make a deal soon. However, with the ongoing tensions between the US and China, the Chinese government had issued new regulations barring TikTok from transferring its technology to foreign buyers without explicit permission from the Chinese government.
Why Not Microsoft
This question also remains unanswered. The new Chinese regulation could be the main reason for choosing Oracle over Microsoft, but it’s still unclear. For weeks now, Microsoft was the strongest contender with a strong possibility to buy the TikTok operations in the US. In fact, when Trump’s administration issued the ban order, Microsoft was the first and top-most names to surface to buy ByteDance’s operations in the country.
“ByteDance let us know today they would not be selling TikTok’s U.S. 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.
TikTok In India: What’s New
It’s been over a month since TikTok was banned in India, which then led to a series of bans on Chinese apps over the following weeks. For now, TikTok continues to be banned in the country, while there have been negotiations to bring it back. Just like the US, a couple of Indian conglomerates, like Reliance Jio, have been working on acquiring TikTok India.
With the new deal between ByteDance and Oracle, the US operations of TikTok have been handed over – saving the company from another massive loss. This could reshape the dynamics in India as well, especially since Reliance Jio has been making several deals over the past few months.