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TikTok officially fears when the clock strikes when the US government on September 20th the deadline closes the door on TikTok if no sale is made. They do not want to sell their company and asked Microsoft and Walmart to take a trip. Then they crept in with a strange proposal to “cooperate” with Oracle on Sunday, but not sell their company.
We are now learning more about the Oracle agreement. TikTok wants to appease the Trump administration with an agreement to open a new American business and hire 20,000 Americans. Oracle will be a data house to ensure that security issues are addressed as required by the US government to secure consumer information from going to the Chinese government. At the moment, it still sounds like another booth to get to election day (or week) which is left in time. That seems to be the ultimate short-term goal.
This news came in part through the Washington Post that “TikTok offered to create a new US-based company and add 20,000 jobs in an effort to win over the US government̵
Treasury Secretary Steve Mnuchin revealed some details in one appearance on CNBC Monday morning, and also confirmed that Oracle was involved in the proposal as presented in the video interview below.
Mnuchin stated that “I will be careful what I say, but I want to confirm that we received a proposal this weekend that includes Oracle as the trusted technology partner,” with Oracle providing many representations on national security issues. It is also an obligation to establish TikTok Global as a company headquartered in the United States with 20,000 new jobs. “
TikTok currently operates its US operations from Culver City, California, just west of Los Angeles. The Washington Post previously reported that TikTok approached the administration with a mitigating proposal.
While Mnuchin did not elaborate on the proposal, people familiar with the talks who spoke on condition of anonymity to discuss them honestly told The Post that the proposed scheme would allow parent company ByteDance to retain ownership but outsource data management to Oracle’s cloud computing operations.
In a statement, TikTok spokeswoman Hilary McQuaide said: “We can confirm that we have submitted a proposal to the Ministry of Finance which we believe will solve the administration’s security problems.” This is far from TikTok recently that they want to sue the government.
But Oracle’s close relationship with President Trump may have given it the upper hand when it knocked out Microsoft to partner with TikTok. Oracle’s CEO, Safra Catz, has dined at the White House with Trump and sat on the president’s transition team after the 2016 election. Oracle co – founder and chairman Larry Ellison hosted a fundraiser for Trump this year.
Mnuchin said the administration “had great confidence in both Microsoft and Oracle.”
Mnuchin just wants to say that “National security remains a priority, and that regulator will discuss the proposal with Oracle “within the next few days.”
Mnuchin added that “It has always been a critical factor for us. Running national security ensures that the technology on American phones is safe and ensures that it is not corrupt. “