- TikTok has finally picked its new heir and no it is not Microsoft.
- Bytedance has made Oracle its technical partner for TikTok in US.
- Oracle and Byetdance have aimed to address the national security concerns raised by the Trump administration.
TikTok has finally picked its new heir and no it is not Microsoft. The Bytedance-owned company had picked Oracle over Microsoft for TikTok's US operations, reports state. However, the reports claim that Bytedance has made Oracle its technical partner for TikTok and will not sell the complete operations to the company.
It was earlier reported that US President Donald Trump, who had given an ultimatum of 90 days to the Chinese company to sell its US arm, had refused to extend the deadline. For the unversed, Trump had ordered Byetdance to sell the US operations of TikTok by September 15. Just a day before the deadline expires, Bytedance seemed to have reached a conclusion with Oracle. So here are some of the important things to know about the deal.
— It is important to note that Bytedance will not sell the US operations of TikTok to any of the companies. It is being reported that Bytedance has chosen Oracle as its "technical partner". The companies have signed an agreement that doesn't mention the complete sale of the operations.
— Reports have stated that through this partnership, Oracle and Byetdance have aimed to address the national security concerns raised by the Trump administration. However, in order to proceed with the deal, Byetdance will have to seek approval from Beijing and Washington. Even Trump's approval of this is very important.
— Bytedance had rejected the offer made by Microsoft. The tech giant was one of the first companies to express its desire to buy the US arm of the short video platform. Informing the same, Microsoft said in a blog, " "ByteDance let us know today they would not be selling TikTok's US operations to Microsoft. We are confident our proposal would have been good for TikTok's users while protecting national security interests. To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas." Microsoft had even partnered with Walmart to acquire the US operations of TikTok. The company was eyeing not only the US operations but also the operations of Australia and New Zealand
— Trump had earlier said that "there will be no extension of the TikTok deadline. We'll either close up TikTok in this country for security reasons, or it will be sold."
— Earlier, Trump had signed an executive order announcing that the app will be taken down in the US if it fails to sell its operations to a US company within 90 days. The Trump administration had raised national security concerns with the app. This was also the reason why TikTok CEO Kevin Mayer stepped down only after 100 days of assuming the chair.