Oracle, one of the biggest supporters of President Donald Trump in Silicon Valley, knock out Microsoft for TikTok’s US operations on Sunday, several media Sockets reported. After weeks of talking about a sale It is not clear that the deal will involve one.
According to the Washington PostBytedance, the Chinese owner of TikTok, will announce that Oracle will be TikTok’s “Technology Partner” in the US The move aims to satisfy fears from the Trump administration and others that TikTok is being used by the Chinese government to spy on US users. The worries prompted Trump to announce that TikTok would be banned in the US if it were not immediately sold to an American company. TikTok has vehemently denied allegations of relaying US data to China.
The Post reports that Oracle is likely to have a stake in the company, although this has not yet been confirmed.
Microsoft’s rejection of its offer comes amid reports that China would rather see TikTok shut down in the US instead of being forced to sell it by the Trump administration. Microsoft was seen as big bucket in negotiations for US TikTok and even partnered with it Walmart, another giant, in his offer.
“We are confident that our proposal would have been good for TikTok users while protecting national security interests,” Microsoft said in one statement Announcement that it had lost it Offer. “To that end, we would have made significant changes to ensure that the service met the highest standards of security, privacy, online safety and the fight against disinformation, and we clarified these principles in our August statement. We look forward to seeing how service develops in these important areas. “
The loss of Microsoft comes as no surprise, however. There had been Reports that Oracle had gained an advantage in the negotiations because it would be willing to accept. In the end it seems that way Oracle agreed not to become TikTok’s parent company, and likely will become a cloud service provider or something similar.
Oracle had something else in mind: a good relationship with Trump. Earlier this year, Larry was Ellison, co-founder and CEO, held a fundraiser for the president. To the $ 100,000Supporters could play golf with the president and take a picture with him. And $ 250,000 would get them all of the above and take part in a roundtable discussion with Trump. Safra Catz, CEO of Oracle, also worked for Trump in 2016 Transition team.
Microsoft, however, wanted to take over TikTok code and algorithms to solve espionage and disinformation problems, per the New York Times. Yet, in recent weeks, China has updated its Export control rules Prohibit the sale of technology like TikTok without government permission.
Although ByteDance has selected an applicant, it is not done yet. President Trump and the US Foreign Investment Committee must now give their approval to the deal blessing. Remember, this is the same president who was just a few days ago couldn’t even remember when he wanted TikTok to be sold by. China could also simply decide that it does not want to support a deal. In other words, anything can happen.