Microsoft lost to Oracle in a bid to acquire Tik-Tok in the US. The Chinese owner of the video-sharing platform chose oracle as its technology partner in American operations.
Trump administration has set 20th September as the deadline for SoftByte. Before which the company was to sell its US operations to an American business else it would be banned from the US market.
Microsoft on Sunday released an official statement citing, “Chinese owner of Tik-Tok ByteDance has informed it that they would not be selling Tik-Tok’s US operations to Microsoft”.
Oracle acquiring tik-top doesn’t mean the video-streaming apps outright to sell to the US company. It simply means that oracle will help tik-top to run its US operations while using its own cloud technologies.
The next step to finalize the deal is for the white house and the committee on foreign investment in the US to approve the deal. It is reported that all the parties involved are satisfied with the concerns which were previously raised by the US government. They believe this deal will clear the data insecurity issue for which the streaming app was blamed earlier.
The latest concern now, however, is the new regulations issued by the Chinese government last month. The regulations would indiscriminately bar TikTok from transferring its technology to any foreign buyer without explicit permission from the Chinese government.
As such they deal is sure to become another geopolitical pinata between the US and China.
Oracle, unlike other technology companies, oracle has always cultivated close relations with the Trump administration.
The previous month, the US president said that he would support Oracle in buying TikTok. He even praised the company calling it great and said that the company could successfully run TikTok.
Oracle has not yet disclosed what it would do with TikTok’s underlying technology. But it would be interesting to see how oracle would address users’ privacy and content filtering in TikTok.
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