Oracle Boots Microsoft From The Bid For TikTok

14 September 2020

Company Oracle may soon be announced the winning bidder for the purchase of the American division TikTok, according to sources of the Wall Street Journal.

A spokesperson for TikTok’s parent company ByteDance declined to comment on the rumored sale. Sources at the China Morning Post in the company claim that Beijing is not in the mood for a deal and is not going to sell its US assets to the Americans.

Microsoft, the main candidate for the purchase of TikTok, dropped out of the auction a little earlier — on Sunday it became known that ByteDance had rejected its offer.

Oracle is one of the few companies in Silicon Valley that supports the Donald Trump administration. For Oracle, the acquisition of TikTok marks a big leap — the company will be able to increase its use of its services by 10%, according to estimates by Constellation Research analyst Holger Mueller.

Earlier, Trump said that TikTok would be blocked in the country on September 20 if the Chinese company does not sell the American part of its business.

The problems of the application in the United States began due to accusations that it could pose a threat to national security — in the PRC, companies are required by law to transfer user data to special services upon request. Since TikTok has about 100 million monthly active users in the United States, their data may also, according to the Trump administration, be compromised.

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