Byte Dance has chosen Oracle as its US partner for its popular Tik Tok video service, a decision that comes close to a deadline for banning the popular app.
The man
familiar with the situation said the proposed deal would meet the needs of Tik Tok customers as well as US national security concerns. The man said
California-based cloud computing giant Byte Dennis will be an American
"technology partner." According to the Wall Street Journal, the deal
cannot be made’ for sale and still requires US government approval.
It may not
have been cleared’ by Beijing yet. On Sunday, the party-controlled TV station
CGTN reported, "CGTN has learned from sources that even Bite Dance will
not sell the tick-ticking US operation to Oracle." It is not clear whether
this is a denial of an agreement, or merely an indication that the reported
"partnership" track talk is not for sale to Oracle.
Chinese tech
company Byte Dance owns the short form video app Tik Tok.
Microsoft,
which had a deal with partner Walmart, said in a statement that its bid had
been rejected by Beijing-based Bite Dance. The software giant was seen’ as the
first runner in the conversation.
"Byte
Dance let us know today that they will not be selling US tik-tOk operations
to Microsoft," Microsoft said in a statement on Sunday. "We believe
that while protecting national security interests, our proposal would be good
for TikTok users."
Microsoft said
it has made "significant changes" to Tik Tok to ensure security,
privacy, online security, and disability information.
The decision
was made by President Donald Trump, who, citing national security concerns,
announced in early August that he intended to ban Tik Tok until it was
purchased by a US company. What Speaking to reporters, Trump specifically
mentioned Microsoft as a candidate - the only company the president explicitly
mentions - made a public front-runner to buy ticks last month. An executive
order was issued’ on August 6 to formalize the threat of a ban, requiring Bite
Dance to take over Tik Tok by November 12.
Oracle's
interest in purchasing Tik Tok was reported’ weeks after the original executive
order for the track. "I think Oracle is a big company," Trump said
before the rally in Yuma, Arizona, responding to reports. "I think Oracle
is someone who can handle that." Trump also called Oracle co-founder Larry
Ellison a "great man."
Allison is one
of Trump's leading aides in the tech industry. He hosted a fundraising event
for the president in February that forced some Oracle workers to walk out in
protest.
An agreement
was announced’ earlier this month, although many obstacles remain. According to
the South China Morning Post, Byte Dance has stated that the AI-based algorithm
behind Tik Tok - apparently the app's biggest asset - will not be part of the
deal. In late August, China updated the country's export control rules to cover
sensitive technology, suggesting that Bite Dance requires Beijing's approval of
any US agreement. It is unclear how Oracle's partnership with Byte Dennis will
overcome these potential barriers, as CGTN Sunday report explained.
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