Oracle acquires TikTok, one of Donald Trump’s favorite companies

Oracle acquires TikTok, one of Donald Trump's favorite companies
Enlarge / Larry Ellison, Chairman of Oracle.

David Paul Morris/Bloomberg via Getty Images

Oracle clearly won the race to acquire TikTok’s US business. Microsoft Open on sunday ByteDance, the Chinese owner of TikTok, rejected Microsoft’s competitive bid earlier this day.

Wall street journal report The deal will not be an explicit sale. Instead, Oracle will become ByteDance’s US “technology partner”. Transaction details have not yet been disclosed, but will soon be submitted to US regulators for approval.

It’s the victory of Larry Ellison, the chairman of Oracle and one of the few tech giants who have publicly supported Donald Trump. Ellison Hold a fundraising event For Trump in February.

In August, a reporter asked Trump about the possibility of trading Oracle TikTok. Trump is A favorable reaction.

“I think Oracle is a great company, and I think its owners are great people,” said Trump. “He’s a great guy. I think Oracle will definitely be the one who can handle it.”

ByteDance is in a tricky situation.

The big challenge facing ByteDance is that it has to meet the potentially conflicting needs of the US and Chinese governments. The U.S. government has threatened to close TikTok due to concerns that the Chinese government will infringe on the privacy of Americans or exert undue influence over content viewed by Americans. Relocating TikTok’s U.S. office to a U.S. company can solve this problem.

However, the Chinese government is not satisfied with the possibility that the US government will seize key Chinese technology assets for the benefit of US competitors. Late last month, Beijing Announcement of new export control rules Restrictions on the sale of artificial intelligence technology-a rule that applies to the algorithm TikTok uses to recommend videos to users. In other words, ByteDance requires approval from the Chinese authorities and the Trump administration before the transaction can proceed.

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According to rumors, Chinese officials may prefer TikTok to be shut down rather than setting a precedent for foreign governments to dominate Chinese technology platforms. ByteDance’s decision to make Oracle transactions less than blatant sales may be an effort to respect the sensitivity of the Chinese government.

However, efforts to calm the Chinese government can easily haunt US regulators in any transaction. And if the Trump administration rejects ByteDance’s proposed deal, it’s very likely that TikTok will end and ByteDance won’t get anything.

So if ByteDance believed that Larry Ellison could use his personal relationship with Trump to approve the deal, it would have been a compelling reason to choose Oracle.

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About the Author: Max Grant

Devoted web lover. Food expert. Hardcore twitter maven. Thinker. Freelance organizer. Social media enthusiast. Creator. Beer buff.

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