Over the last few months, everyone was glued to their phones as they waited for updates regarding the ban of TikTok – an app that has dramatically changed digital culture. After President Trump’s executive order in August forcing ByteDance to sell TikTok, the fate of our favorite creators and videos seemed uncertain. However, they will not be going anywhere because TikTok has agreed to partner with Oracle. But will the US government approve this deal?
When India banned the video-sharing app in June, American TikTok users worried that the app would be banned in the US after Secretary of State Mike Pompeo announced in early July that they are looking into banning TikTok due to national security concerns.
BIG: After India, US Secretary of State Mike Pompeo says that the United States is “certainly looking at” banning Chinese social media apps, including #TikTok. ‘Download the App only if you want your private information in the hands of the Chinese’, Pompeo warns. pic.twitter.com/gtbQ9tjlCd
— Aditya Raj Kaul (@AdityaRajKaul) July 7, 2020
Because TikTok is owned by the Chinese company ByteDance, it is under the control of the Chinese Communist government. This raises concerns all over the world because there were allegations that TikTok is sharing private information with the Chinese government – although TikTok denied these accusations.
TikTok felt that the Trump Administration was ignoring their explanations and denials of their connections to China leading to TikTok’s lawsuit against the administration.
Due to President Trump’s distrust of China as he believes they are a huge economic competitor and responsible for the current world pandemic, President Trump did not want to take any national security risks when it comes to China. Despite Gen Z’s retaliation, President Trump set a hard deadline on ByteDance to sell TikTok to a US owned company by September 20 or it will be banned in the US by September 29.
Over the last month, TikTok has been presented with many potential buyers including Microsoft and Walmart, but people thought Microsoft would be TikTok’s new owner.
Oracle Outbids Microsoft
However, yesterday, Microsoft announced that ByteDance rejected their offer to buy TikTok.
Today, Oracle officially confirmed that it has been chosen to become TikTok’s “trusted technology provider.” However, it is hard to tell exactly what this means.
Oracle is a software company that sells software and cloud services to companies to help them manage and improve their businesses.
As a “technology partner,” Oracle may be allowing TikTok to utilize its cloud infrastructure, which would attract more businesses to become Oracle clients and improve TikTok’s data security.
Since the announcement of Oracle’s deal with TikTok, Oracle’s stock has increased almost 6% as TikTok is a huge platform with over 2 billion downloads worldwide. With TikTok, Oracle’s revenue is sure to increase exponentially as they will be in control of one of the world’s most popular social media networks.
“Are you buying Oracle stock today?” pic.twitter.com/lL7JTuuIl0
— Douglas A. Boneparth (@dougboneparth) September 14, 2020
Is This a Good Deal?
However, some are skeptical of this deal as many are bothered by President Trump’s connection to the company. Larry Ellison is a former CEO of Oracle and currently serves as executive chairman of the board and chief technology officer. In February, Ellison hosted a fundraiser at his Coachella Valley home for Donald Trump, but was not physically present. Also, the current CEO Safra Catz was a part of President Trump’s transition team.
Oracle won the bid for TikTok. I wonder why… 🤔https://t.co/Ehd0u25QvB
— Katie Hill (@KatieHill4CA) September 14, 2020
Oracle appears to get TikTok. Its chairman, Larry Ellison, is a big Trump donor. Competitor Microsoft is not. Crony capitalism is the norm. Hope it becomes the next MySpace pronto.
— Michael Glassman (@MHGtweet) September 14, 2020
Maybe it’s just a coincidence that Oracle, which has zero expertise in consumer technology (as opposed to Microsoft), and is headed by Larry Ellison and Safra Catz, two of Trump’s biggest (and only) supporters in Silicon Valley, gets to buy TiKTok. https://t.co/chvNLfcQ7v
— andy serwer (@serwer) September 14, 2020
Despite this, most people are ecstatic about TikTok being saved, but the deal still needs to be approved by the White House. Within the last few weeks, there have been rumors that China will prohibit ByteDance from selling its algorithm to the US; however, to prevent a ban, ByteDance must sell 100% of the company – including its algorithm.
The algorithm is TikTok’s most valuable feature as its ‘For You’ page gives each user an individualized experience based on their engagement as well as allowing anyone to go viral, no matter their following.
my “for you page” is too accurate on tiktok wtf
— yanisbeth🐙 (@yanisbishh) September 12, 2020
From Treasury Secretary Steve Mnuchin’s statement, it is unclear if TikTok agreed to sell its algorithm to Oracle.
According to Secretary Mnuchin’s statement to CNBC, they received ByteDance’s proposal over the weekend and will review the deal this week. Mnuchin said he will be talking with Oracle over the next few days to ensure American data and phones are secure with this deal.
Even though the details of Oracle’s deal with TikTok have not been released, TikTok fans are jumping with joy as they will not have to say goodbye to their favorite videos and creators.
Do you think the White House will approve this deal? Will TikTok sell its algorithm? Why do you think TikTok picked Oracle over Microsoft?