Today, Georgia Wells and Aaron Tilley with the Wall Street Journal reported that Oracle is expected to win the bidding for the U.S. operations of the short video sharing app TikTok, their knowledgeable sources stated, beating out Microsoft in a high profile deal to save a hit social media app that has actually been caught within the middle of a geopolitical battle.
Oracle Corp. ORCL -0.58% won the bidding for the U.S. operations of the video-sharing app TikTok, people familiar with the matter said, beating out Microsoft Corp. MSFT -0.65% in a high-profile deal to salvage a social-media sensation that has been caught in the middle of a geopolitical standoff.
Oracle is expected to be revealed as a trusted tech partner of TikTok within the United States, and the offer is most likely not going to be structured as a straight sale, the Wall Street Journal reported.
The crucial next step is for the White House and the Committee on Foreign Investment within the United States to authorize the deal, stated one of the sources, adding that the individuals believe that it satisfies the issues related to information security that have actually been raised in the recent past by the U.S. government.
This news comes days after the Chinese government tossed settlements into doubt when it issued some new export restrictions late last month on the style of expert technology systems TikTok utilizes. The algorithms, which are used to figure out which videos should be served to users and are also seen as TikTok's secret sauce, were thought about part of the offer negotiations up until the new Chinese policy change raised new questions over how to value the social media app.
A couple of individuals familiar with the Oracle deal have stated it was better suited to call it a partnership, instead of an acquisition, suggesting that the current setup would likely not be a significant exchange of assets.
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President Donald Trump has stated repeatedly that he would shut down TikTok within the United States if it wasn't offered to an American business by Sept. 15, 2020. On August 6th, the White House released an executive order, which provided ByteDance a 45 day time frame before it would ban the app. TikTok would be banned because the Trump administration says that it presents both a financial and national security risk, if it isn't offered to up to a buyer with in the United States. The 45 day time frame would end on September 20th. Either way we should know quite a bit more within the next couple days to a week at the most. Its good to see that it won't likely be banned since it has turned out to be a great way to grow a large following or fan base.