Oracle Corporation (NYSE: ORCL) won the bid for TikTok’s US operations. According to The Wall Street Journal, Oracle has been selected as a “trusted tech partner”. ByteDance is not selling TikTok completely to Oracle.
Microsoft said earlier today that ByteDance rejected their bid. As a result, Oracle was the last bidder left. In a blog post, Microsoft wrote that “We are confident our proposal would have been good for TikTok’s users while protecting national security interests”.
Oracle is best known for enterprise software and cloud computing, and many expect that they will benefit from gaining TikTok as a customer for their cloud computing operations. As a part of the deal, Oracle plans to also address the national security concerns raised by President Trump and his administration. ByteDance’s existing investors are also expected to have a stake in the final deal with Oracle.
Oracle has been working with ByteDance and its investors following its bid. ByteDance has also proposed plans to safeguard the data of TikTok’s users within the US.
President Trump, as stated in his executive order signed in August, the “Executive Order on Addressing the Threat Posed by TikTok“, will ban TikTok if not sold to a US-based company. Considering that President Trump wanted a US company to own TikTok’s operations in the United States, it is currently unclear whether he will approve the proposed deal.
The Committee on Foreign Investment in the United States (CFIUS) is currently overseeing the talks between Oracle and ByteDance.
More updates on this continuously evolving story will be given as additional information is made available.