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There are still variables, where does TikTok go?


There are still variables, where does TikTok go?

Not sold to software company Oracle...

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On September 14, Oracle, a large enterprise software company, confirmed that it would work with ByteDance to save TikTok's position in the United States. This means that Bytedance did not sell TikTok, but just sought cooperation. There are still variables, where does TikTok go?

Prior to this, ByteDance had negotiated with some potential buyers such as Microsoft and Oracle, and under the pressure of US President Trump, it completely withdrew funds from TikTok in the United States.

Although TikTok is famous for its music and dance videos, the United States is worried that TikTok users may disclose information about their country. So far, TikTok has approximately 100 million users in the United States.

When China updated its export restriction list in August, trade negotiations were reversed, allowing the government to intervene in any foreign transactions related to the TikTok algorithm. According to Reuters, China would rather see TikTok shut down in the United States than see it forced to sell.

In TikTok's proposal to the US Department of the Treasury, Oracle played the role of a "reliable technology provider".

Reuters revealed that Oracle can manage TikTok's US user data, and Oracle also discussed buying TikTok shares in the United States. The data of TikTok users is now stored on Google’s parent company Alphabet’s cloud, and backed up in Singapore.

Some of the major investors in ByteDance, such as General Atlantic and Sequia, also acquired a small share of TikTok.

However, it is not clear whether Trump, who wants US technology companies to control the majority of TikTok user data in the US, will accept the proposal.

US Treasury Secretary Steven Muchin said the government will evaluate the proposal this week. Said that they want to protect data and phone calls in the United States, and will discuss with the Oracle technical team in the next few days.

According to Steven Muchin, the deadline for approving the transaction is September 20. In the proposal, TikTok will promise to create 20,000 new jobs in the United States.

The Committee on Foreign Investment in the United States (CFIUS) will be responsible for the Bytedance and Oracle transactions. In addition, the government has sent a separate team to conduct assessments.

Sources said that ByteDance used the acquisition of Genworth Financial Insurance Company of the United States by China Oceanwide Holdings Co., Ltd. two years ago as a reference example. In the transaction, Oceanwide Holdings Co., Ltd. agreed to use US third-party services to manage Genworth Financial's contract holder data in the United States.

Therefore, Oracle will also play the same role. Although Oracle has the advantage of processing and protecting data, it has no experience in social networks. Because their customers are businesses, not individuals, Oracle only plays the role of a "reliable technology provider."

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