InvestorQ : Is Tik Tok finally getting into an alliance with Oracle of the US?
diksha shah made post

Is Tik Tok finally getting into an alliance with Oracle of the US?

Arya Nanda answered.
3 years ago

It looks like after the intervention by the Chinese government and their refusal to transfer the algorithms of Tik Tok to the US, the owner of Tik Tok, has give up on plans to sell the US operations of this ByteDance subsidiary.

China recently appropriated the right to approve / disapprove any transfer of intellectual software property by any Chinese company to third parties. Now, China has refused to approve the transfer of the algorithms to potential US buyers of Tik Tok.

As a result, ByteDance will now pursue a likely partnership with Oracle. The hope is that such a tie-up with a US giant will eventually legitimize Tik Tok operations in the US. Donald Trump has threatened to shut down Tik Tok US operations for security considerations.

Tik Tok is a significant player in the US with over 100 million users. Therefore, the deal being proposed is that ByteDance becoming the technology partner of Oracle. This will give Tik Tok the required legitimacy in the US and the cloud storage to save billions paid to Google.

For Larry Ellison, this comes as Godsend because Oracle has tremendous clout and reach in handling and safeguarding data, but no real experience in social media. So, ByteDance gets the Oracle Cloud support and Ellison gets the popular social media platform of Tik Tok.