In mid-August, Patently Apple released a report entitled “Oracle is the latest Tech Giant Rumor of being in talks to buy TikTok USA” Our report noted that Oracle was in talks to buy the social media company TikTok together with its Canadian , Australian and New Zealand assets.
Oracle has reportedly won an agreement to manage TikTok’s US cloud operations. Oracle had been rumored to be part of the bidding process to buy TikTok, but The Wall Street Journal reports that Oracle has been chosen as a “reliable technology partner” instead. This is different from a direct sale, and seems to suggest that Oracle will help run TikTok̵
The news of an Oracle deal comes just an hour after Microsoft revealed that they no longer bought TikTok after the offer was rejected by TikTok owner ByteDance. Microsoft had followed an agreement to acquire TikTok’s operations in the United States, Australia, Canada and New Zealand. It is clear that talks have swung away from a full acquisition, with Oracle having allegedly won the bid to be a technology partner instead.
A person familiar with the White House discussions said it was unclear whether an agreement with Oracle would pass the pattern with the Trump administration, with various factions pushing for a complete closure or direct sale of TikTok to a US company. .
TikTok is trying to avoid a full acquisition in the hope that the Democrats will win the election and let Biden give the Chinese company what they want to appease China. However, Trump’s deadline is set to ensure that TikTok is either sold or killed in September with no hope of extending it until after the election. TikTok’s attempts to get around Trump’s ultimatum will only irritate the administration, and lead to a complete closure when the deadline expires. By rejecting the Microsoft agreement, it is clear that TikTok has no interest in selling the company to a US company. Whether it is an order given by China directly is unknown at this time.
Sources: Bloomberg, The Verge.