According to CNBC’s Jim Cramer, approval of Oracle’s deal for becoming a trusted technology partner for TikTok will be announced on Tuesday afternoon.
This means that, if accepted, Oracle will become a trusted technology provider for TikTok in the US, including running the cloud computing operations and processing data for US users. This deal, however, still falls short of President Trump’s demand for a full acquisition. ByteDance, based in Beijing, will currently keep a majority stake in TikTok and offered to the US Treasury that they’ll create 20,000 US jobs with TikTok.
Oracle, based in Redwood City, will become a technology partner for managing TikTok’s data in the US and take a minority stake.
Such arrangements for ownership of TikTok could make it difficult to gain support from the officials that will have to approve the deal. According to The Financial Times, the arrangement will also create an individual corporate entity for TikTok, which ByteDance and Oracle will take stakes in.
Oracle has also stated that data held by users in America will get stored and processed within the United States as a part of the Committee on Foreign Investment in the United States (CFIUS).
CNN also reported that many TikTok’s users were posting videos saying that Oracle “saved” them and the platform, as well as thanking and showing their support for Oracle.
The CFIUS chairperson Steven Mnuchin and Commerce Secretary Wilbur Ross are reportedly meeting at the White House to consider the proposal. It is still unclear how President Trump will respond to the current proposals since his executive order called for a complete sale.
President Trump says that a deal is close, so it shouldn’t be too much longer before a solid answer is given.
More updates on this continuously evolving story will be given as additional information is made available.