Oracle allegedly wins deals for TikTok, a pursuit in which Microsoft was earlier dismissed from. A spokesperson of TikTok said something concerning the deal. The person said that the company “doesn’t comment on rumors or speculation”. Oracle didn’t reply to Techcrunch immediately for comment.
The Wall Street Journal also wrote that Oracle. which is an exceptional ally of the administration of Trump in Silicon Valley, will be pronounced as “trusted tech partner” of TikTok in the United States. Furthermore, the Journal mentions that someone who knows more about the matter says that the deal is “likely not to be structured as an outright sale”.
The alleged purchase of TikTok’s U.S. operation by Oracle put a stop to the obscure fate of the app in the country. The reported buy of the app arrives days before the 20th of September. That is the day that the administration of Trump place a ban on the operations of TikTok if the company fails to strike an agreement with a buyer.
However, it isn’t so confusing which deadline TikTok will cling to. As Donald Trump mentioned last week that there won’t be any extension of the 15th September deadline.
Microsoft’s Offer to TikTok rejected
This Sunday, Microsoft mentioned that ByteDance declined its offer for the TikTok’s U.S. operations. ByteDance is the parent company of the app.
The statement reads thus:
“We are confident our proposal would have been good for TikTok’s users while protecting national security interest”. This statement purely says that Microsoft would make some important changes on every side of privacy, disinformation, security, as well as online safety.
The company added:
“We look forward to seeing how the service evolves in these important areas”. However, with all these being said by Microsoft, ByteDance, the app’s parent company rejected its bid.
Problems and fears within the security of TikTok have been a major issue fo the app. TikTok got banned in India, together with 58 other apps because of the issues of “national security and defense”. India was the largest overseas market of TikTok.
Together with Microsoft, so many important and well-known tech companies have allegedly mentioned being in the market for the U.S. operation of TikTok. They include Walmart, Twitter, and Google. However, as Ron Miller pointed at, there are several reasons why Oracle would want an app like TikTok: market share.
Oracle has come out of its database roots and entered into cloud infrastructure, as well as marketing automation. Well, Oracle is not only a database maker and provider too. The company is also a massive operation, that monetizes off of information.
During the pandemic, Oracle collaborated with Zoom. If Oracle was supposed to bring the same type of collaboration to accomplish results with TikTok. It would have become a very big client.
Holger Mueller to Techcrunch concerning Oracle
An analyst at Constellation Research, Holger Muller mentioned to TechCrunch that Oracle’s scoop of TikTok “will add plenty of load to their infrastructure service”.
“That’s what matters to them with viral loads preferred. If Microsoft gets TikTok it could boost their usage by between 2 percent and 5 percent. While for Oracle it could be as much 10 percent”.
The reported buy of Oracle, hence, could be an increase that makes sense. However, a considerable one.
Oracle deal to win a “go-ahead” from Beijing
It is unpredictable how an Oracle deal will receive an acceptance from Beijing, which is unhappy with a forced sale. Some weeks ago, the Chinese government made a set of trade rules that could prevent the transportation of fake intelligence technologies.
Especially those that are used in personalizing the feeds of TikTok’s user. The revision is broadly seen as Beijing’s act to confuse TikTok’s sale. At the same time, ByteDance mentioned that it will “strictly abide by” the rule.
Throughout the weekend, Reuters reported that Beijing would witness TikTok banned in the United States instead of going with Washington’s request to sell, which would “make both ByteDance and China appear weak in the face of pressure from Washington”.
A source mentioned something to the South China Morning Post. The source said:
Some mode of transaction may still occur, however it might exclude the proprietary algorithms of TikTok created by ByteDance’s Beijing office. This means that TikTok’s U.S. operations or succeeding owner would still have to write again those codes that have driven the app to global dominance.
Oracle might arrive as a minority stakeholder
Above all, Oracle might end up being a minority shareholder instead of a TikTok owner. This statement was according to CNBC. A funding tie might just be brave enough to tie up the cloud services of Oracle to TikTok. And this has more than 10 million people making use of it only in the U.S. market.
If a sale takes place or not, being apprehended in geopolitical tensions is what Zhang Yiming would want last for his brainchild.