Oracle And TikTok Reached An Agreement

The Oracle statement stated that the company has confirmed the statement of US Treasury Secretary Steven Mnuchin that Oracle will become a trusted supplier of TikTok services.

Mnuchin said on the same day that President Donald Trump has received Oracle’s plan to make TikTok a company headquartered in the United States. The government will review the transaction later this week.

In an interview with CNBC earlier, Mnuchin said that from the perspective of the United States, what they require is that the code in the program is safe, and that American data is safe. And TikTok also stated in a statement that they have submitted a proposal to the Ministry of Finance and believe that the proposal will solve related security issues.

TikTok in the United States was accused of security issues and faced blockade by the US government. Microsoft and Oracle successively expressed interest in acquiring TikTok’s business in the United States, and Oracle finally won the bidding. However, it has been pointed out that the actual transaction between TikTok and Oracle only involved restructuring and did not actually sell related businesses.

According to the proposed transaction content, Oracle will become Bytedance’s technology partner and will be responsible for the management of TikTok’s US user profile. Oracle is also negotiating the shareholding of TikTok’s US business, but the transaction structure is not yet certain.

People familiar with the matter said that this transaction should be called a cooperation rather than an acquisition, because it means it is not an asset transaction. According to the transaction content, major investors such as General Atlantic and Sequoia, such as Bytedance, will also acquire a minority stake in TikTok’s US business.

According to people familiar with the matter, both Oracle and Bytedance believe that this approach can meet the requirements of the US government and can also bypass Beijing’s technology export ban. China’s official China News Service pointed out that Bytedance will not sell TikTok’s US business to Microsoft, and Oracle is unlikely to become an acquirer.

CNN quoted sources as saying that TikTok and Oracle’s cooperative transaction should meet the Trump administration’s national security considerations. President Trump ordered TikTok to be sold to American companies before the 15th of this month on the grounds of national security last month, otherwise it would be banned.

The Wall Street Journal and Reuters reported that Oracle may also acquire TikTok’s business in the United States, Canada, Australia and New Zealand. However, the cooperation model between TikTok and Oracle needs to be clarified, and it is not a “sell out deal.” The source pointed out that Bytedance has informed the US official and potential buyers that it will not sell TikTok’s core algorithm.

There are reports that Bytedance will not hand over the source code to any US buyer. If Trump rejects this condition, TikTok will not be sold and would rather leave the US market. After the Beijing authorities issued the export control list, if TikTok was to be sold or reorganized, “without algorithm” would become a new threshold, and any interested buyer must accept it.

China’s said TikTok will continue to use the United States as its headquarters and create 20,000 jobs for the United States. The media interpreted Minuqin’s “data compliance partner” as similar to Apple’s data compliance program in China, and did not involve the sale of President Trump, nor the transfer of core technology.


Reviewer overview

Oracle Deal With TikTok - /10


The Oracle statement stated that the company has confirmed the statement of US Treasury Secretary Steven Mnuchin that Oracle will become a trusted supplier of TikTok services.

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