Last updated on September 19th, 2020 at 01:10 pmReading Time: 2 minutes
The agreement will allow Oracle to take complete charge on the data management processes of Tiktok.
Oracle further confirmed that the proposal extended by ByteDance to the Treasury Dept. states that Oracle will act as the trusted technology provider for TikTok.
Steve Mnuchin, Secretary of Treasury Department, informed CNBC about the received proposal regarding Oracle controlling TikTok US. Mnuchin further stressed that Oracle has made “many representations for national security issues” Oracle also has further plans to create TikTok global, a company headquartered by US that will incorporate 20,000 new jobs.
It is still unknown why Oracle was chosen over Microsoft. The proposal remains under review and is yet to speak on if Oracle gets the rights to retrieve TikTok’s algorithm.
What is the Oracle-TikTok Deal about?
For the past couple of months, TikTok has been raging in controversies exploding between Washington and Beijing. US legislators have charged China’s ByteDance with allegations of passing data to the Chinese govt.
The platform has faced a ban in India, following which US President Donald Trump demanded ByteDance to offload TikTok’s USA business by Sept 15. If not, the platform was to face a ban in the US too.
However, Oracle surfaced to bid on TikTok last month. The enterprise has worked in partnership with high-end firms General Atlantic and Sequoia Capital. Both the firms reportedly have shares in ByteDance.
So far, there have been mysteries and speculations regarding the profits Oracle might gain through the deal. The firm has diligently built a portfolio in the b2b tech sphere. There have been sources claiming Oracle’s involvement could be a potential result of the public affiliation between Larry Ellison, CEO of Oracle, and Trump.
The complete nature of the agreement is yet to be revealed. For now, it’s clear that Oracle will handle the cloud infrastructure of TikTok.