Oracle has reportedly signed a contract to manage TikTok’s US cloud operations. It was rumored that Oracle was part of the bidding process to acquire TikTok, however The Wall Street Journal reports that the company has been selected as a “Trusted Technology Partner” instead. This is different from a full sale and seems to suggest that Oracle will help power TikTok’s US operations with its own cloud technologies.
News of an Oracle deal comes just an hour after Microsoft announced that TikTok would no longer be acquired after its offer was rejected by TikTok owner ByteDance. Microsoft had signed a deal to purchase TikTok̵
President Trump signed an executive order on Aug. 6 that blocked all transactions with ByteDance, and the order called for an American company to buy TikTok’s US business. The EO was supposed to go into effect within 45 days, but the president signed a follow-up order that gave ByteDance 90 days to sell or outsource TikTok in the US. This order was the result of an investigation into the company by the US Foreign Investment Committee (CFIUS), which monitors foreign acquisitions of US companies for possible security risks.
Oracle has a long history of working with the US government, making its partnership with TikTok a strategic move amid the growing undercurrent of Chinese opposition from the White House and Congress.