Sept. 16, 2020, 4:49 p.m.
New Delhi: President Donald Trump, on Tuesday, said that he has heard Silicon Valley tech giant Oracle Corporation is very close to seal a deal with TikTok to become its ‘tech-partner’ in the US.
Trump’s remarks came a day after Microsoft, who was considered a top candidate to buy app’s operations in the country, revealed that TikTok has decided to partner with Oracle.
TikTok came under Trump’s scanner for two factors — One is that the wildly popular app is owned by a Chinese internet company, ByteDance, and the second is that Beijing has constantly been in rift with the Trump administration over their newly introduced Security Law in Hong Kong.
Talking about TikTok, Trump administration officials earlier said that Chinese-owned companies pose a threat to national security because the Chinese government has the ability to access those companies’ systems under local law. The US president also claimed that the app of selling US users’ personal data to Chinese officials. However, Beijing had denied the accusations.
Meanwhile, Microsoft said its bid to acquire U.S. operations of TikTok has been rejected by the app’s parent company, ByteDance. In addition to Microsoft, a number of prominent tech companies including Twitter, Google, and Walmart. had also shown interest in buying the app.
According to media reports, ByteDance has not sold the app completely but has partnered with Oracle for the reconstruction of the app in the US. Oracle will also be responsible to handle US users’ personal data. Oracle has grown out of its database roots and made its way into marketing automation and cloud infrastructure. The company is not just a database maker and provider. It’s a massive operation, that monetizes off of data. Earlier in this pandemic, the enterprise data provider teamed up with Zoom. If Oracle were to bring the same kind of partnership to fruition with TikTok, it would have landed a huge client.
After weeks of rumors, evacuations from major TikTokers, and endless amount of confusion, Donald Trump had issued an executive order on August 6, giving 45 days to TikTok’s Chinese owners ByteDance,to either sell the app to a U.S.-based company or be ready to face the ban in the country.
The partnership, however, requires nod from both Trump Administration and Beijing officials. Trump, while addressing the media, said that he is going to make a decision soon.