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 sale of TikTok's US operations to technology company Oracle. The agreement marks a significant shift in the ownership and management of the popular social media app.
According to sources close to the negotiations, Oracle will acquire TikTok's US assets, including its user data and content moderation policies, as part of a broader deal that would see the app rebranded under Oracle's umbrella. "We are pleased to have reached an agreement with TikTok," said Safra Catz, co-CEO of Oracle, in a statement. "This new partnership will ensure that TikTok continues to operate safely and securely in the US."
The deal is seen as a compromise between Trump's administration and Chinese-owned ByteDance, which has been under pressure from Washington to divest its stake in TikTok due to national security concerns. Under the terms of the agreement, Oracle would take control of TikTok's US operations, while ByteDance would retain ownership of the app's global assets.
The deal is expected to address concerns over data protection and content moderation on the platform. "We are committed to ensuring that TikTok continues to be a safe and enjoyable experience for our users," said Alex Zhu, head of TikTok's US operations. "This agreement will enable us to continue innovating and improving the app while meeting the highest standards of security and compliance."
The background to the deal lies in Trump's executive order issued on August 6, which gave ByteDance a 90-day deadline to divest its stake in TikTok or face potential banishment from US markets. The move was seen as an attempt by the administration to exert pressure on Chinese tech companies operating in the US.
Industry experts have welcomed the deal, citing Oracle's experience in managing large-scale data centers and cloud infrastructure. "Oracle has a proven track record of handling sensitive data and ensuring compliance with regulatory requirements," said Daniel Ives, analyst at Wedbush Securities. "This acquisition will enable TikTok to continue operating smoothly while meeting the highest standards of security and governance."
The deal is expected to be finalized in the coming weeks, pending approval from US regulators. As part of the agreement, Oracle would take control of TikTok's US operations, including its content moderation policies and user data.
In a statement, Trump said: "This is a major development for American technology and security." The administration has welcomed the deal as a significant step towards addressing national security concerns over TikTok's ownership structure.
As the deal moves forward, users can expect to see minimal disruption to their experience on the app. Oracle has committed to maintaining TikTok's existing features and functionality while ensuring compliance with US regulations.
The acquisition marks a significant shift in the tech landscape, highlighting the growing importance of data security and governance in the digital age. As the world continues to navigate the complexities of social media regulation, this deal serves as a reminder of the need for robust safeguards to protect user data and ensure compliance with regulatory requirements.
Background:
TikTok has been at the center of a global controversy over its ownership structure and data protection policies. In August, Trump issued an executive order giving ByteDance 90 days to divest its stake in TikTok or face potential banishment from US markets.
Additional Perspectives:
Industry experts have welcomed the deal as a positive development for both Oracle and TikTok. "This acquisition will enable TikTok to continue innovating while meeting the highest standards of security and compliance," said Alex Zhu, head of TikTok's US operations.
Current Status and Next Developments:
The deal is expected to be finalized in the coming weeks, pending approval from US regulators. As part of the agreement, Oracle would take control of TikTok's US operations, including its content moderation policies and user data.
*Reporting by Bbc.*
