Recently, the president of the US, Donald Trump, has banned the TikTok app due to security concerns. That’s why the owner of TikTok has chosen Oracle, as it has reportedly gained a deal to maintain TikTok’s US cloud plans.
Oracle had been rumored to be a member of the bidding method to procure TikTok. The deal looks more like a corporation rescheduling than the total sale Microsoft had recommended.
However, it includes a post in a recently configured American business; this news is being declared by one of the anonymous people who have been asked not to be recognized, as the information isn’t public.
Oracle wins deal for TikTok’s US operations
Oracle wins the deal for TikTok’s US operations, but it was not clear that TikTok’s decision of Oracle as a technology partner would indicate that Oracle would also take a preponderance ownership post.
The people who are involved in this deal declared that they aren’t clear about the proper ownership of Oracle regarding TikTok. While the news regarding the Oracle deal comes just an hour after Microsoft announced that it was no longer obtaining TikTok after TikTok owner ByteDance declined its suggestion.
As Microsoft had been trailing this deal to acquire TikTok’s operations in the US, Australia, Canada, and New Zealand. But Bytedance reports narrate regarding the acquisition, that Oracle reportedly winning the deal and has become the new technology partner.
On the other side, Oracle’s shares were purchased as much as 17% higher in early trading before businesses opened in New York on Monday, and after concluding at $57 on Friday.
According to the reports, the deals had come together immediately after the government ramped up its all threats upon TikTok. Despite TikTok’s tries to put measure between its app and its Chinese claim.
It established former Disney manager Kevin Mayer as its American CEO, but he quit in August, saying the “political situation has distinctly changed.” However, Oracle has developed out of its database roots and compelled its all-access into marketing industrialization and cloud infrastructure.
The company is not just a database producer and provider, as it is a huge operation that manages all the data. Here, the people who are included in the negotiations are not yet confirmed regarding the position of Oracle.
So, it may be possible that Oracle might end up as an adolescent stakeholder rather than becoming an owner of TikTok. After the deal, the company also appointed a former top aide to Vice President Mike Pence; its CEO, Safra Catz, who also worked on Trump’s transition team.
Moreover, the president of the US, Donal Trump, affirmed in one of their statement that he has faith that Oracle can easily handle the buying of TikTok.