Oracle Takes Over TikTok In The US After Pressure From Donald Trump

09/14/2020 07:37 AM – Updated: 09/14/2020 08:15 AM

The pressure from the president of the United States, Donald Trump, took effect and ByteDance, the Chinese company that owns the popular social network TikTok, chose the American Oracle to be its trusted technological partner in the North American country, according to what emerged this Sunday.

In the absence of official confirmation from the two companies, Microsoft, Oracle’s main rival in this bid, publicly admitted defeat and announced that it had not been chosen, while sources close to the operation confirmed it to the local press.


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Trump, who considers Chinese ownership of TikTok a threat to US national security, had given ByteDance a September 15 deadline to either sell its operations in the country to a local company or leave the country.

Will continue in the US

With what was known this Sunday, the option that TikTok was forced to close its operations in the US would be ruled out in principle, although the approval of the operation by the US and Chinese governments is still missing, which has already in the past shown its dissatisfaction with the pressure exerted by Trump.

The election of Oracle does not imply that there will be a sale in strict terms of the ByteDance business in the United States, but that it will have Oracle as a partner in the country, something that both companies consider satisfies the requirements imposed by the president.

It does not imply that a sale will take place in strict terms of the business in the US, but that ByteDance will have Oracle as a partner in the country

TikTok, which in the US has more than 80 million users, is one of the social networks that has grown the most in recent years, which has become the main entertainment for many teenagers and a marketing channel for important celebrities.

Links with Trump

Oracle, based in Redwood City (California) and founded in 1977, is one of the pioneering companies in Silicon Valley, and despite not having a name as recognized by the general public as Apple or Google, its software is used by millions of users. companies all over the world.

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Oracle CEO and Co-Founder Larry Ellison, the world’s fifth-largest fortune teller, according to Forbes, is one of the few prominent tech industry executives who has publicly voiced his support for Trump, and even held a fundraising event. for the president’s re-election campaign in February.

Oracle logo on a building in Virginia, USA. (Reuters)

In recent weeks, it had been speculated that precisely this good harmony between Ellison and Trump could tip the balance in favor of Oracle, since the main objective of ByteDance is to guarantee the operation of its operations in the US with the approval of the president.

Microsoft admits defeat

Oracle’s biggest rival in this bid was precisely its competitor in the world of ‘software’ Microsoft (in this industry, Microsoft holds number 1 and Oracle, number 2 in sales volume worldwide), which a few hours before that the election of Oracle was known already admitted defeat in a statement.

“ByteDance has told us that it will not sell its operations in the United States to us. We are confident that our proposal would have been good for TikTok users, and at the same time it would have protected US security interests,” said the company that owns the Windows operating system. .

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Microsoft was seen from the beginning of August as the favorite to take over the ByteDance business in the US, and the Redmond (Washington state) firm had come to partner with the Walmart department store chain for this purpose.

Walmart, the world’s largest company in both annual turnover and number of employees, saw in TikTok an opportunity to advance its strategic commitment to electronic commerce and online advertising.



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