TikTok, Oracle face several hurdles to keep afloat

Avatar Kartia Velino | September 17, 2020 2 Views 0 Likes 0 Ratings

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TikTok has found a dance partner to keep it going in the US, but it has to convince the feds not to let the deal flop.



American software firm Oracle said it would become the “trusted technology provider” for ByteDance — the Chinese tech giant behind the popular app known for its viral dance videos — in a deal meant to assuage the Trump administration’s fears that Beijing could get ahold of its user data.

Neither TikTok nor Oracle disclosed substantive details of the deal announced Monday, but it will reportedly stop short of the full sale President Trump ordered last month.

Oracle is expected to manage TikTok’s American user data and take a stake in its US operations without becoming the outright owner, according to news reports.The deal also calls for the creation of a new US-based company called “TikTok Global” with 20,000 new jobs, Treasury Secretary Steven Mnuchin said, adding that the feds will review the proposal this week.

“They’ve chosen Oracle, we’ll be reviewing it with their technical teams and our technical teams to see if they can make the representations that we need,” Mnuchin told CNBC on Monday, a day after Microsoft revealed ByteDance had rejected its bid for TikTok.

Mnuchin said the feds have “a lot of confidence” in Oracle and that the company had made “many representations” that it would address the national security issues at play. Those include concerns that Americans’ user data could be shared with the Chinese government, allegations TikTok has denied

Trump himself expressed support for Oracle’s bid last month, calling it a “great company” that “could handle it.” Oracle co-founder and chairman Larry Ellison hosted a Trump campaign fundraiser at his California estate in February, and CEO Safra Catz reportedly worked on the president’s White House transition team.

NY Post

Vanguard

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Written by Kartia Velino


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