Why does Oracle want to acquire TikTok and why does Trump support this deal?

Why does Oracle want to acquire TikTok and why does Trump support this deal?

Reports about the acquisition of the (TikTok) app in the United States indicate that the Chinese company (ByteDance), which owns the application, has refused the sale, and is seeking a partnership with the company (Oracle) Oracle.

Newspaper reported The Wall Street Journal that the company (ByteDance) began negotiating with Oracle to become a trusted technical partner for TikTok in the United States, so that it would manage the data of application users in the United States, in a deal aimed at responding to the Trump administration’s concerns about the impact of the video sharing application on US national security, according to a person familiar with the matter.

Since the beginning of 2020, the application (TikTok) has been under scrutiny by the White House due to concerns that the app – which has more than 100 million users in the United States – is sending US user data directly to the Chinese government.

Those concerns were the alleged reason for Trump to issue a threat last August that ByteDance should sell the TikTok app to an American company by September 15th, or it will be banned altogether in the United States.

News of the agreement with Oracle appeared days before the ban on the application (TikTok) took effect in the United States, as after September 20, the US Department of Commerce is expected to clarify the types of commercial transactions with the application, according to an executive order signed by Trump in Last August 6.

Here are the top 5 things to know about the TikTok Oracle acquisition, and the Trump administration’s relationship with it:

1- Oracle surpassed Microsoft:

Once Microsoft announced at the beginning of August about Discussions started with ByteDance On the acquisition of (TikTok) application in the United States, many assumed that it would be the winner of this acquisition or partnership, and that this step would help improve Microsoft’s position in the social media platform market.

But Microsoft announced that ByteDance rejected its offer, and said in a statement: “We are confident that our offer was beneficial to TikTok users, protecting national security interests, and to do so we would make significant changes to ensure the service meets the highest standards of online security and privacy, and combating misinformation. We clarified these principles in our August statement.

2- Oracle seeks to market its cloud computing products:

At first glance; Oracle’s deal to partner with TikTok seems a bit strange, as Oracle has much less communication with the average consumer than Microsoft, as it is a company known for its success in the software and enterprise services market only.

Not to mention that Oracle does not have any social media platforms or consumer video businesses, so what do you want from TikTok?

“Oracle’s interest in TikTok is primarily driven by the development of its cloud computing business,” says The Wall Street Journal. In theory, the customer data collected by TikTok could be used by Oracle to improve its marketing products, and this step would be an important breakthrough for the company in the field of consumer-oriented services.

3- The deal is likely not to be a complete purchase:

Reports indicate that the deal will not be a purchase, but rather a partnership, as Oracle is called a trusted technical partner for TikTok in the United States, who manages TikTok user data in the United States instead of ByteDance.

This indicates that Oracle will not actually control the company’s assets, and this includes: lack of access to the artificial intelligence algorithms used to personalize user feeds in TikTok developed by ByteDance, as Oracle’s role is limited to technical assistance in running TikTok operations in the states. United only.

This condition is what caused the failure of the agreement with Microsoft, as China earlier this month announced commercial restrictions on artificial intelligence technologies, such as the type used by the (TikTok) application, but Microsoft confirmed its desire to obtain artificial intelligence algorithms from TikTok. .

4- The deal still needs to be approved by the White House:

Finalizing this deal requires approval from US regulators and the White House. Will that happen? It’s hard to say for sure, but it seems likely Because of the strong relationship between the company executives and the Trump administration, Trump also expressed support for the Oracle offer in August, saying, “I think Oracle is a great company, and its owner is also a wonderful man, who can be easily dealt with.”

5- Violent reactions to the relationship between Oracle and Trump:

Violent reactions to this deal have begun to form among some users, due to Oracle’s strong relationship with the Trump administration, as (Larry Ellison), one of the founders of the Oracle company, is one of the few tech tycoons in Silicon Valley who support Trump.

Hosted (Ellison) Fundraising campaign for Trump Earlier this year, he joined a White House advisory group in April working to revive the US economy.

She also served as (Safra Catz) the current CEO of Oracle Corporation In Trump’s transition team, It donated $ 125,000 to the Trump Victory PAC in 2020, according to data from the Federal Election Commission.

In TikTok videos and comments, some users have referred to the relationship between Oracle executives and Trump, They rejected the deal.

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