ByteDance Chooses Oracle as the New US Service Provider of TikTok

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ByteDance Chooses Oracle as the New US Service Provider of TikTok

The latest business news from the US states that ByteDance chooses Oracle finally to act as the service provider of TikTok. The decision comes out just before the deadline from the Trump government. President Donald Trump had given an ultimatum to ByteDance about banning TikTok services in the US.

The only option left for them was to now transfer the app’s authority to a native company. So, after much discussion and offers from big names like Microsoft, the authority of TikTok goes to Oracle. On Monday, September 14, Oracle officially confirms that ByteDance has submitted the business proposal to the US Treasury Department. As a result, Steven Mnuchin, the US Treasury Secretary, affirms that the government plans to review the Oracle deal within a week.

The company’s spokesperson confirms that ByteDance chooses Oracle finally, and the Treasury is yet to review their proposal. However, there is a verbal confirmation that the US-based company will now act as the TikTok service provider. ByteDance is transferring the responsibility considering the 40-year old goodwill of Oracle. It has an appreciable track record for being one of the highest performing technology solutions.

ByteDance chooses Oracle as its US TikTok representative

Oracle is yet to share further details about the deal. However, a close source says that the company aims to meet all the requirements of TikTok users. Moreover, they will satisfy all security protocols of the country. According to a TikTok spokesperson, the proposal submitted to the US Department of Treasury also addresses national security’s raging issue.

In its official statement, TikTok says that the proposal will enable them to continue supporting their community of 100 million US citizens. All of these users love the app for entertainment and connection. Moreover, many small business creators and owners depend on TikTok to build meaningful careers. Also, people promote their businesses on this platform and therefore try to grow their livelihood.

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TikTok has denied allegations of data fraud that has been brought against them by the Trump government. They repeatedly want to highlight that they are not a medium of the Chinese government to spy on the USA. Moreover, the app company does not store or transfer any user data from the USA to China. Presently, ByteDance chooses Oracle to carry out their services on behalf of them. Although it is not a pure business deal, it still requires approval from the government.

China and the USA must come together to close the TikTok deal

On the one hand, the US government does not want to comment on its decision. While on the other hand, Beijing is also supposed to go through the proposal and give clearance. American media reports that this may not be a typical business deal. It means that ByteDance is not selling off TikTok to Oracle. Instead, they are just transferring operational rights in the US. However, nothing is clear now, and the correct news will be out once the US government confirms the deal.

Earlier Microsoft was trying to acquire a deal with ByteDance, and Walmart was a partner in the process. However, in a recent official statement, a Microsoft spokesperson clarified that Chinese organization ByteDance has rejected their quote. During the past few months, Microsoft was one of the front-runners in the process of negotiations.

Finally, on Sunday, September 13, Microsoft announces that ByteDance does not want to sell off the US operations of TikTok to them. However, the software giant still believes that they were the fittest candidates to run, keeping in mind national security interests. The company highlights that they had plans to make significant alterations to the app. It was to ensure the privacy, security, and online safety of all users.

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Donald Trump, too chooses Oracle over Microsoft

During the beginning of August, President Donald Trump announced that he decides to ban TikTok in the country. The primary reason to do so was national security issues. He also mentioned that the app could only function in the US if an American company runs the operations.

The deadline that he gave ByteDance to decide about leaving the country or transferring its operations is November 12. In this context, the only organization he mentioned as an excellent choice to run the business was Microsoft. Therefore, it became the front-runner to secure the deal. Later, Oracle’s interest in the deal was revealed by Trump during a rally in Yuma, Arizona. He mentions that Oracle is the right choice for the deal, and co-founder Larry Ellison is a fantastic man.

The reference justifies the fact that Larry Ellison is one of the most ardent supporters of Donald Trump. In February this year, he hosted a fundraising event for Donald Trump. As a result, several of his employees walked out of the event as a symbol of protest. Although a deal was to conclude by the beginning of September, there are undoubtedly several barriers. ByteDance is putting forward primary conditions before they can finalize the deal.

One of the most important conditions is that they cannot make the app’s AI-powered algorithm a part of the transfer deal. The same is a huge asset of the company, and they are not ready to let Oracle take over its operations. There are other conditions from the side of the Chinese government as well. The final analysis is pending, and the deal’s finalization will take place only after that is complete.

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