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 Introduces ‘TikTok Tactics’ Online Training For Marketers
The free online course provides easy-to-follow best practices to level-up marketers' approaches to advertising on the platform.
TikTok Introduces Instant Page, A Lighting Fast Landing Page Feature
TikTok has introduced a new customizable shopping ad display option to streamline the customer journey for users.
TikTok Is Working On A New Avatar-Creation Tool
TikTok seems to be working on a new feature that allows users to build their digital identity in the app …
TikTok Partners With Zefr To Ensure Safe Ad Placements
TikTok has announced a new partnership with brand suitability platform Zefr to ensure ads won't end up next to undesirable, …
TikTok May Be Bringing Back The Option To See Who Viewed Your Profile
TikTok may be working on reinstating a feature that allows users to know who viewed their profile in the past …
Do ‘For You’ Page Hashtags Actually Work Οn TikTok?
Do 'For You' Page hashtags work on TikTok? Hootsuite's Senior Social Marketing Manager, Amanda Wood, and her team seek the …
TikTok Is Coming To A Waiting Room TV Near You
After conquering both your phone and your home, TikTok could soon broadcast on a waiting room TV near you, thanks …
TikTok Adds A ‘Repost’ Button
TikTok is reportedly adding a new "Repost" button, allowing users to re-share clips in their 'Following' and 'For You' feeds.
TikTok Remains The Most-Visited Online Destination
TikTok has been crowned the most-visited online destination, a position it has held since August 2021.