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Oracle beats rival Microsoft in negotiations regarding taking over operations of TikTok in the US

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PHOTO CREDITS: TOM BRENNER/REUTERS 

According to Bloomberg, Oracle beat rival Microsoft in negotiations over the weekend regarding taking over operations of TikTok in the United States. ~

This attempted deal comes weeks after President Trump threatened to shut the Chinese-owned app down, claiming that the app is a threat to national security. President Trump expressed support for Oracle taking over the app earlier in the discussions regarding the app. “I think that Oracle would certainly be somebody that could handle it,” he said, according to the New York Times. ~

The deal between TikTik’s current owner ByteDance Ltd. and Oracle will most likely look more like a corporate restructuring than a full sale like Microsoft proposed. The terms being discussed with Oracle are still evolving, one person familiar with the talks said. One of the options being explored is that Oracle could take a stake in a newly formed U.S. business while serving as TikTok’s U.S. technology partner and housing the video app’s data in Oracle’s cloud servers. Early offers from both parties valued the U.S. business at about $25 billion, but that was before Chinese officials weighed in with new rules imposing limits on technology exports, said people with knowledge of the matter. In a statement Monday morning, Oracle confirmed “it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend.” Oracle shares gained 6.5% at 10:29 a.m. in New York Monday. ~

The timeline for Oracle taking over TikTok operation in the United States remains unclear. Oracle has a history of collaborating with the White House, which could make its partnership with ByteDance one more easily accepted by the Trump administration. The White House is currently evaluating the deal. ~

ARTICLE: CONNOR KMIECIK

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