Last month, Microsoft has announced plans to buy TikTok of the parent company ByteDance. This sparked a series of negotiations and discussions which resulted in a decision –Oracle will likely buy TikTok. No, it wasn’t a typo.
the the Wall Street newspaper (WSJ) reports that Oracle will make the announcement soon according to its privileged sources. Microsoft pulled out of negotiations to buy TikTok only last night, and ByteDance accepting a competing offer from Oracle seems to explain why.
But contrary to Microsoft’s intentions, WSJ says this is not a full buyout. Instead, the Terms will list Oracle as a “trusted technology partner”. We will need a full announcement to better understand what this means.
President Trump recently threatened to ban TikTok in the United States, citing national security concerns. He stood firm as Microsoft entered talks to buy the company, under the separate promise that a sale would include data and algorithms and at least bring TikTok’s American reach to American shores. It is not known whether Oracle’s offering meets these requirements.
Even when Oracle makes the announcement, the purchase will not happen immediately. US and Chinese regulators will take a look and will have to approve any deal, “trusted tech partner” or whatever.