Oracle Wins Battle for US TikTok Operations

15 September 2020

    Sources report that as Microsoft got the boot from Bytedance Sunday, Oracle has won the battle for TikTok US operations.

     

    A fact Oracle has not yet confirmed itself, but Wall Street Journal already mentioned that the big Trump ally company will be announced as TikTok’s “trusted tech partner” in the United States very soon. Additionally, it is speculated that it will not exactly be a purchase, but likely more of a partnership between the two giants.

     

    Oracle’s takeover of TikTok’s US operations would put an end to the app’s questionable fate in the US, and right on time - the Trump administration planned to ban TikTok operations in the US unless an agreement was reached in several days.

     

    Microsoft has gotten its rejection from ByteDance Sunday, and didn’t try to mask its disappointment. Many other prominent tech companies have also been rumored to be in the market for TikTok’s US operations, including Twitter, Google, and Walmart, but many experts agree that there is reason why Oracle precisely has gotten the upper hand.

     

    Aside from being close ally of the Trump administration, Oracle has grown out of its database roots and made its way into marketing automation and cloud infrastructure, making money off data. Earlier this year, Oracle has teamed up with Zoom, for instance. If Oracle were to bring the same kind of partnership through with TikTok, it would have made a huge difference for the company.

     

    “That’s what matters to them with viral loads preferred. If Microsoft gets TikTok it could boost their usage by between 2% and 5%, while for Oracle it could be as much 10%,” Holger Mueller, an analyst at Constellation Research says.

     

    As good as it sounds, it may yet be too early for Oracle to pop champagne. It’s still unclear whether the forced sale deal will win Beijing’s approval. Two weeks ago, the Chinese government issued a new set of rules that could block the export of artificial intelligence technologies, such as those used to personalize TikTok’s user feeds. A move that makes sense following Beijing weekend comment that it would rather see suspension of TikTok’s US operations altogether, than follow Washington’s order to sell, which would “make both ByteDance and China appear weak in the face of pressure from Washington.”

     

    Regardless of what the future may hold, the Oracle Corporation has already jumped 4% as it entered the frontlines of TikTok US purchase.


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