NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Oracle wins TikTok US bid, but not for 'full sale'
    Business

    Oracle wins TikTok US bid, but not for 'full sale'

    Oracle wins TikTok US bid, but not for 'full sale'
    Written by Shubham Sharma
    Sep 14, 2020, 02:19 pm 2 min read
    Oracle wins TikTok US bid, but not for 'full sale'

    After months of discussions and complications, Chinese giant ByteDance is finalizing a deal for the US business of TikTok. The company has reportedly chosen the bid submitted by enterprise provider Oracle over that of a consortium led by Microsoft. However, this will not be structured as a full sale of the hit video service. Here are more details.

    Oracle chosen as 'technology partner'

    Under the agreed terms, Oracle will be announced as ByteDance's 'technology partner' for TikTok in the US. As part of this, the American company, Reuters' sources report, will be taking control of TikTok US users' data as well as a stake in the platform. ByteDance's top US-based backers, including General Atlantic and Sequoia, will also take minority stakes in TikTok US.

    Goal to allay US government's concerns

    With this arrangement, ByteDance hopes to allay the concerns of the US government, which has repeatedly alleged that the personal data collected by TikTok could be handed over to the Chinese government, posing a threat to national security. Even though ByteDance explicitly denied the claims, the Trump administration imposed 'sell-or-close' orders to get the US assets of TikTok divested to a credible American company.

    But, will this be approved?

    Even though Oracle fits the description of a credible American company, the deal that appears to be moving ahead is not that of an outright sale of TikTok US. It remains to be seen whether the US government agrees to this arrangement and allows the video-sharing platform to operate, with Oracle running operations as a partner, or issues an order for its shut down.

    This also appeases the Chinese government

    Meanwhile, the move to go for a partnership, instead of full divestment, will also help ByteDance appease the Chinese government, which has opposed the 'forced sale' - so much so that it was ready to see TikTok getting banned. China had even added technologies such as those used by TikTok to its review-mandated tech export list to throw a wrench in the sale plan.

    AI tech might not be transferred

    Having said that, this partnership, which is yet to be made official, might not include the ByteDance-developed AI technologies added to China's export list. This means that Oracle might have to write the algorithms for the US feed recommendation system of the video service. Notably, in the US alone, TikTok boasts more than 100 million users.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    US Government
    TikTok
    General Atlantic
    Oracle

    US Government

    China may let TikTok face US ban: Here's why Reuters
    #ComicBytes: Everything you need to know about Keanu Reeves' BRZRKR Keanu Reeves
    Amid political turmoil, TikTok CEO Kevin Mayer steps down Trump Administration
    Huawei phones may lose Android update support: Here's why Huawei

    TikTok

    NewsBytes Briefing: TikTok US partners with Oracle, and more NVIDIA
    NewsBytes Briefing: TikTok sale deadline likely to be missed, more Huawei
    NewsBytes Briefing: TikTok tries to dodge sale, and more Google Maps
    NewsBytes Briefing: SoftBank considering bidders for TikTok India, and more Google

    General Atlantic

    Ed-tech start-up Unacademy raises $150 million, joins elite unicorn club Facebook
    Ed-tech unicorn BYJU's secures $122 million from Russian billionaire's fund Tiger Global
    NewsBytes Briefing: Snap's revenue grows; Moderna's vaccine won't be cheap Twitter
    Jio Platforms raises Rs. 11,367 crore from KKR: Details here Mukesh Ambani

    Oracle

    Google Australia under investigation for harvesting data from Android phones Australia
    Oracle's Ellison declares war on Amazon cloud San Francisco
    End of TikTok's woes? Trump approves Oracle's bid for TikTok Donald Trump
    #ComicBytes: Cassandra Cain's intriguing and dangerous journey in DC Batman

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023