Oracle has reportedly won a deal to manage TikTok’s US cloud operations. Oracle had been rumored to be part of the bidding process to acquire TikTok, but The Wall Street Journal reports that the company has been selected as a “trusted tech partner” instead.
This is different from an outright sale, and appears to suggest Oracle will be helping run TikTok’s US operations with its own cloud technologies.
News of an Oracle deal comes just an hour after Microsoft revealed it was no longer acquiring TikTok after its bid was rejected by TikTok owner ByteDance. Microsoft had been pursuing a deal to buy TikTok’s operations in the US, Australia, Canada, and New Zealand. It’s clear talks have swayed away from a full acquisition, with Oracle reportedly winning the bid to be a technology partner instead.
President Trump signed an executive order August 6th blocking all transactions with ByteDance, and the order demanded an American company purchase TikTok’s US business.
The EO was intended to take effect within 45 days, but the president signed a follow-up order giving ByteDance 90 days to sell or spin off TikTok in the US. That order was a result of an investigation of the company by the Committee on Foreign Investment in the US (CFIUS), which oversees foreign acquisitions of US companies for any potential security risks.
Oracle has a history of collaboration with the US government, making its partnership with TikTok a strategic move amid the growing undercurrent of Chinese opposition running through the White House and Congress.