Oracle to be TikTok's US operations partner; Microsoft bemoans Bytedance rejecting its bid

Enterprise services provider Oracle has been chosen as US operations tech partner for popular video-sharing app TikTok, which Microsoft failed to acquire. While Tiktok has t confirmed deal yet, multiple foreign media report claims that Oracle is set to be anunced as TikTok’s “trusted tech partner” in United States. It furr mentions that deal is “likely t to be structured as an outright sale” as against Microsoft's bid, which entailed a sale.

Tiktok’s unclear fate in America would come to an end if Oracle purchases application’s US operations. Tiktok-Oracle deal comes days before September 20, day that Trump administration set for a ban on app’s operations if company fails to reach an agreement with a buyer.

On Sunday, Microsoft anunced that its bid for US operations of TikTok was rejected by app’s parent company, ByteDance. TikTok’s trouble around data security has been a flagship issue for application, causing heavy loss in its overseas business. Earlier on June 29, TikTok was banned in India, along with 58 or apps, due to “national security and defence” issues. India was biggest overseas market for TikTok.

Microsoft's statement on TikTok

"ByteDance let us kw today y would t 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. To do this, we would have made significant changes to ensure service met highest standards for security, privacy, online safety, and combatting disinformation, and we made se principles clear in our August statement. We look forward to seeing how service evolves in se important areas," Microsoft has said.

READ | Microsoft Says Its Bid To Buy TikTok Has Been Rejected

What’s in it for Oracle?

In addition to Microsoft, a number of prominent tech companies such as Twitter, Google, and Walmart have rumoured to be interested in acquiring TikTok’s US operations. However, Oracle turned out to be highest bidder, as per reports.

Growing out of its database roots, Oracle entered in marketing automation and cloud infrastructure. company is t just a database creator and provider, but it is a massive operation, that earns revenue from data. Earlier during this pandemic, Oracle teamed up with teleconferencing app Zoom. If database provider forms same kind of partnership with TikTok, it would extend its foray into consumer applications.

READ | ByteDance Unwilling To Sell TikTok's Algorithm, Wants US Buyer To Develop New Code: Report

It’s unclear how China would approve Oracle deal as it is clearly unhappy with Tiktok’s forced sale. Two weeks ago, Chinese government updated certain trade rules, blocking export of AI techlogies such as those used to personalize TikTok’s user feeds. Moreover, ByteDance is unwilling to part with popular Chinese social media app's algorithm.

deadline for sale of TikTok expires on Tuesday, September 15. exclusion of algorithm from sale of app will greatly affect its value and reby cause buyers to second guess ir decision.

READ | China Accuses US Of Abusing National Security Concept To Force TikTok Sale

READ | Trump Wants 'cut' From TikTok Deal For Its Sale To United States Operations