Tiktok rejected Microsoft’s ambitious bid to take over its US operations but nodded “Yes” to Oracle.
The move by the Chinese parent company ByteDance to accept technology company Oracle as its business partner in the United States is influenced by the need to allay the fears of the US Government over the security concerns of the short-form video app TikTok.
Oracle will take over the management of TikTok’s US user data.
“We can confirm that we’ve submitted a proposal to the Treasury Department which we believe would resolve the Administration’s security concerns,” TikTok said in a statement
The US administration claims TikTok and other Chinese apps are national security threats but Oracle’s track record in intelligence might be considered a trustworthy option.
Larry Ellison – who is ranked the world’s fifth richest person by Forbes – has been openly supportive of President Trump and recently held a fundraiser for him in February and in April joined a White House advisory group working to revive America’s economy.
“I think Oracle is a great company and I think its owner is a tremendous guy, a tremendous person,” Trump said in August after the Financial Times reported that Ellison was “seriously considering” a deal with TikTok. “I think that Oracle would be certainly somebody that could handle it.”
Tiktok is not given out their source code, which was part of the deal Microsoft was willing to go with, but ByteDance is firm on its position to keep its algorithm private.