Trump TikTok Deal: Oracle to Acquire App's US Operations
In a surprise move, President Donald Trump announced on September 14 that a deal had been reached for the acquisition of TikTok's US operations. According to sources, technology company Oracle will take over the app's domestic business, with Walmart potentially investing in the venture.
The deal comes after months of negotiations between the US government and ByteDance, TikTok's Chinese parent company. The agreement aims to address concerns over data security and potential national security risks associated with the popular social media platform.
"We're very happy that we've come to a conclusion," Trump said during a press conference at the White House. "We think it will be tremendous for business, tremendous for jobs, and tremendous for the country."
Under the proposed deal, Oracle will assume control of TikTok's US operations, including its data storage and management. The company has pledged to ensure that all user data is stored on servers located within the United States.
"We believe this deal will provide a safe and secure environment for users while maintaining the app's creative freedom," said Safra Catz, Oracle's CEO. "We're excited about the opportunity to work with TikTok and contribute to its continued growth."
The acquisition marks a significant shift in the global tech landscape, as major companies navigate complex regulatory frameworks and data protection laws.
TikTok has become a cultural phenomenon among younger generations, with over 100 million active users in the United States alone. The app's popularity has raised concerns about data security and potential national security risks, particularly given its Chinese ownership.
The deal also highlights the growing importance of data storage and management in the digital age. As more companies move their operations online, ensuring secure and compliant data handling practices becomes increasingly crucial.
While details of the agreement remain scarce, experts predict that the acquisition will have far-reaching implications for the tech industry.
"This deal sets a precedent for future acquisitions and mergers involving Chinese-owned companies," said Jennifer Granick, a cybersecurity expert at Stanford University. "It's essential to understand how data is being handled and stored in these transactions."
The proposed deal still requires regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) before it can proceed.
As negotiations continue, one thing is clear: the future of TikTok in the US will be shaped by this acquisition. With Oracle at the helm, the app's user base and creative community may see significant changes in the months to come.
Background
TikTok has been under scrutiny since its acquisition by ByteDance in 2016. Concerns over data security and potential national security risks led the US government to launch an investigation into the company's operations.
In August, Trump signed an executive order requiring ByteDance to divest its ownership of TikTok within 90 days or face a ban on the app's US operations.
Current Status
The proposed deal between Oracle and TikTok is awaiting regulatory approval from CFIUS. If approved, the acquisition will mark a significant shift in the global tech landscape.
As negotiations continue, experts predict that the deal will have far-reaching implications for the tech industry, data storage, and management practices.
*Reporting by Bbc.*
