Corporate provider Oracle is said to have won the bidding war for TikTok’s US operations, a chase that took Microsoft out of circulation earlier today.
The Wall Street Journal writes that Oracle has been announced as a “Trusted Technology Partner” by TikTok in the US. In addition, the Journal cited that a person familiar with the matter said the deal “is unlikely to be structured as a direct sale.”
Oracle’s alleged purchase of TikTok’s US operations would put an end to the app’s unclear fate in the country. The reported purchase occurs days prior to September 20, the day the Trump administration placed a ban on TikTok from doing business if the company fails to reach an agreement with a buyer.
On Sunday, Microsoft announced that its offer to operate TikTok in the US had been rejected by the app̵
“We are confident that our proposal would have been good for users of TikTok while protecting national security interests,” the statement said that Microsoft is making “significant changes” to security, privacy, online security and disinformation would.
“We look forward to seeing how the service develops in these important areas,” the statement concluded.
Issues and fears related to TikTok’s security were a flagship of the app. TikTok was banned in India along with 58 other apps due to “national security and defense” issues. India was TikTok’s largest overseas market. In addition to Microsoft, a number of well-known technology companies are said to be in the market for TikTok’s US activities such as Twitter, Google and Walmart. But as our Ron Miller pointed out, there’s a reason a company like Oracle craves an app like TikTok: Marketshare.
Holger Mueller, an analyst at Constellation Research, told TechCrunch that if Oracle could use TikTok as an anchor client, it would put a huge strain on the infrastructure service.
“TikTok will put a significant strain on its infrastructure service. This is what matters to them when viral load is preferred. If Microsoft gets TikTok it could increase usage by 2% to 5% while for Oracle it could be up to 10%, ”he said.
The purchase reported by Oracle could therefore be a boost that actually makes sense. But still dramatic.