Software company Oracle confirms that it is part of a proposal from TikToks parent company to the US government. This should prevent the app from being banned in the US.
Finance Minister Mnuchin says that a proposal has been received and will be looked at next week. The sales deadline is not tomorrow, but next Sunday.
Oracle says in a brief statement that it will serve as a “trusted technology partner”. This very likely means that if the proposal is approved, the company will become responsible for TikToks US user data.
Becoming a hosting provider
According to sources from The Wall Street Journal and Reuters news agency, the app will not be sold. It is not yet clear what the exact distribution will be. In fact, with this step Oracle would become the hosting provider for TikTok America. The Financial Times also suspects that the software giant will probably acquire a minority stake in the company.
Chinese state television said earlier today that at least the source code will not be released. That could be in line with the proposal, which concerns American user data. TikToks algorithm would remain in the hands of ByteDance, the parent company.
It is as yet unclear whether the US and China are in agreement with this construction.
Microsoft out of the race
Last night, Microsoft announced that ByteDance had rejected that companys proposal. Details of the rejection of that takeover were not disclosed. Oracle therefore remained the only candidate.
“We are convinced that our proposal was good for TikTok users and ensured our national security,” Microsoft said. “We would have made significant changes to allow for the best security, privacy, online safety and the fight against disinformation. We look forward to seeing how the service develops in these important areas”
TikTok is Chinas first social media app with great success in the West. The app has about 3.5 million users in the Netherlands and 100 million in America.
Is China watching your TikTok? CCeit Stories researched it: