Following news that Microsoft has failed in acquiring TikTok’s US operations, those familiar with the development report that Oracle was chosen to be TikTok’s technology partner, which translates to Oracle being able to secure a deal with the embattled social media platform.
Those familiar with the matter said that the deal is not an outright sale; instead, Oracle will be helping TikTok’s US operation through its cloud technologies. The terms of the said deal are evolving, so there might be changes along the way depending on how things will go from here.
The said deal is a strategic move for the US government, as Oracle has a history of working closely with the US government. While it is less of a fit for Oracle to acquire TikTok, the deal should help it bolster its cloud computing and consumer data businesses.
Despite not pushing through with the deal, Microsoft insists that their proposal—which should have covered TikTok’s operations in the US, Australia, Canada, and New Zealand—”would have been good for TikTok’s users, while protecting national security interests.”