It looks like Oracle wins TikTok’s U.S. partner as parent company ByteDance announced it had rejected Microsoft’s offer.
According to the latest from ByteDance, it has selected Oracle as its U.S. tech counterpart. Oracle will have a significant role in its business operations in the country. This news came after Microsoft’s announcement that ByteDance has ignored its offer.
ByteDance had to select it’s new U.S. partner or have its services banned before a White House imposed September 20 deadline. According to a Microsoft blog post, they are confident that their offer would have benefited TikTok’s millions of users in the U.S. and, at the same time, protect national security.
Microsoft further explained that to enhance TikTok’s use, they would have changed some aspects of the service’s privacy, security, online safety, and ending disinformation. These were all part of their August proposal.
TikTok was not available for comment regarding Microsoft’s proposal. Meanwhile, Oracle reps were not available to make any comments as well.
Last week, after reports that Oracle was interested in TikTok, CEO of Oracle Safra Catz said that their quarterly earnings meetings with analysts started with a reminder that Oracle will not be giving out any comments about TikTok. Thus, questions about it will not be entertained.
The Financial Times also reported that Oracle would like to create a deal together with General Atlantic and Sequoia Capital, two companies with representations in the Chinese company’s board.
On August 2, Microsoft revealed that they have plans to purchase TikTok Canada, U.S., New Zealand, and Australia. After a few weeks, large-chain retail outlet Walmart was reported to be working alongside Microsoft to claim TikTok.
Oracle also offers cloud infrastructure, just like Microsoft. It is something that TikTok could use as they provide their short video format in the U.S.
However, Oracle was not a part of the top companies offering cloud technology by revenue last year while the tech giant Microsoft was in the second slot.
Take note that Oracle has important relations to President Trump’s administration. CEO Safra Catz is a part of the President’s transition team while co-founder Larry Ellison held a fundraiser for President Trump’s election in his California home. Also, CIA director and Defense Department secretary under President Barack Obama is part of Oracle’s board of directors.
Meanwhile, Walmart remains interested in TikTok and is optimistic in discussions with the Chinese company and other parties. Reps said that they are aware that all deals must comply with “regulatory and national security.”