TikTok will not be selling its US operations. Instead, the Chinese-owned platform has chosen Oracle as its new “Trusted Technology Partner.”
Will Trump accept the new terms? If not, ByteDance, TikTok’s owner, says it’s ready to pull the app out of the US.
Related | Facebook Announces Broad Launch Of Data Use Checkup
Trump wanted a sale, he might have to settle for less. On Sunday night, TikTok announced it chose Oracle to take control of its US operations, putting an end to weeks of speculations. The company also explained it opted for a “technology partnership” with Oracle over Microsoft who intended to isolate TikTok’s US operations from the company’s business in Europe and Asia.
Mnuchin on CNBC confirms Oracle has made a proposal to be Tik Tok's "trusted technology partner" to create a US headquartered company with 25,000 new jobs. CFIUS will review the proposal this week and make a recommendation to Trump.
— Alan Rappeport (@arappeport) September 14, 2020
Microsoft shared its disappointment and concerns around the Oracle deal:
“We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting misinformation,” Microsoft said in a statement. “We look forward to seeing how the service evolves in these important areas.”
Details of the deal remain to be shared. However, with Oracle being referred to as a “trusted technology partner,” it is clear that TikTok wants everyone to know the agreement is not to be considered a sale. TikTok’s Chinese parent company ByteDance will retain control of the algorithm, while Oracle will host cloud storage in the US. Which, in itself, does not seem to solve any of the security concerns that first pointed Trump to call for a TikTok ban.
“A deal where Oracle takes over hosting without source code and significant operational changes would not address any of the legitimate concerns about TikTok, and the White House accepting such a deal would demonstrate that this exercise was pure grift,” former Facebook security chief Alex Stamos stated on Twitter.
A deal where Oracle takes over hosting without source code and significant operational changes would not address any of the legitimate concerns about TikTok, and the White House accepting such a deal would demonstrate that this exercise was pure grift. https://t.co/3kpwqnEYol
— Alex Stamos (@alexstamos) September 13, 2020
The deal between TikTok and Oracle will be presented to Trump later this week, as the two companies have until September 20 to resolve the national security concerns.
You might also like
More from TikTok
TikTok Academy: A New ‘TikTok For Business’ Education Platform
TikTok last week announced the launch of TikTok Academy, a new education platform to help marketers develop TikTok expertise.
How Effective Are TikTok Spark Ads?
Every wondered just how effective TikTok Spark Ads are? Amanda Wood, Senior Social Marketing Manager at Hootsuite, and her team, …
TikTok Is Testing Clear Mode For A Clutter-Free Experience
TikTok has begun testing clear mode a new feature that removes the titles and buttons when scrolling through videos.The platform …
TikTok Tests A New Way To Keep You Engaged: Video Games
TikTok and its parent company ByteDance have been conducting tests on video games in Vietnam. The objective: keep young users …
TikTok Will Be The 2022 Presenting Sponsor Of LA Pride Parade
TikTok will be the presenting sponsor for the 2022 LA Pride Parade that will take place June 11 and 12.The …
TikTok Makes It Easy To Credit Creators
TikTok is introducing new tools to make it easier to give credit to Creators and ensure equitable distribution.The new features …
TikTok’s 7-Second Challenge: Performance Insights And Key Learnings
Does TikTok’s 7-second challenge generate more engagement? Hootsuite's Senior Social Marketing Manager and her team seek the answer.
TikTok (Finally) Adds A Friends Tab
TikTok has finally added a friends tab, it replaces the Discover tab in the app’s bottom menu.Is TikTok becoming a …
TikTok Starts Applying Labels To Content From State-controlled Accounts
In response to the war in Ukraine, TikTok is rolling out its state media policy to label content from some …