Oracle said on Monday that Oracle confirms Secretary Mnuchin’s statement that it is part of a proposal submitted by ByteDance to the Treasury Department over the weekend, in which Oracle will serve as a trusted technology provider.
Mnuchin told CNBC Monday morning that the US government plans to review the deal this week. “I would just say from my point of view, we would need to make sure the code is one, secure, Americans’ data is safe, that the phones are secure and that we want to discuss Oracle next day with our tech teams,” he said. said.
Depending on how the deal goes, it could boost Oracle’s cloud business. This can make Oracle more visible to younger consumers and give it control over a major advertising space.
Microsoft, which competes with Oracle in cloud computing and database software, was also interested in Ticketok’s US operations. But Microsoft’s bid was rejected, and the company announced that it had withdrawn from the process on 13 September. Microsoft said on 2 August that it was in talks to acquire TikTok at the US Walmart, an interest in TikTok for its e-mail. Commerce Capacity and joined forces on a bid with Microsoft last week following the breakup of a consortium with SoftBank and Google’s parent company Alphabet. On Sunday, Walmart said it was still eager to invest in Tiktok.
Tiktok has stated that it has more than 100 million monthly active users in the US. Millions of users are in their teens, the New York Times reported in August. According to industry research company ComScore, the largest age group was 18–24 among Tiktok users in the United Kingdom in December.
As an app that entertains people, TikTok stands out from the rest of Oracle, which sells software to large businesses, schools and government institutions. Oracle and Ticketok are interested in marketing, however. TikTok derives revenue by displaying advertisements to users, and provides Oracle software that it can use to manage the distribution of advertisements on Facebook and other channels. Tiktok is quickly adding users, while Oracle’s revenue has declined in four of the eight most recent quarters.
For TikTok, serving as a technology provider could mean that Oracle would offer its own cloud infrastructure for application use. This would give Oracle another popular asset for its executives to be proud of as a cloud client, and it could attract additional cloud business. Last week on Oracle’s earnings conference call with analysts, Larry Ellison, co-founder of the company and its president, made several references to the video calling service Zoom’s use of Oracle public cloud. According to technology research company Gartner, Oracle was not among the top five cloud infrastructure providers in revenue in 2019.
The acquisition has helped Oracle expand its portfolio. The 2010 Sun deal made Oracle a notable vendor of servers for data centers, and entered the retail market for sales with the 2014 purchase of Microsoft. Oracle’s $ 9.1 billion acquisition of cloud software company NetSuite in 2016 is the largest transaction in its 43-year history.
Oracle maintains relations with the US government. CEO Safra Catz was part of President Trump’s transition team, and Allison hosted a fundraising event for Trump’s election campaign at one of his California homes earlier this year. Leon Panetta, director of the Central Intelligence Agency and Secretary of the Department of Defense under President Obama, sits on the board of Oracle.
ByteDance was founded in 2012, and the same year it launched the news app Toutiao. It came with Tickcock for people outside of China in 2017, after bringing a similar app for people in China called Doyin. Also in 2017, ByteDance acquired a separate video sharing app, named Music. For this reason, last year, the Committee on Foreign Investment in the US contacted ByteDance in the US. Concerns about the deal led to concerns about the Chinese government’s accessibility. user data.
Bytdance said it would follow Chinese government’s updated restrictions on exports, which now touch on “recommendation of personal information services based on data analysis,” among other things. Tiktok relies on the recommendation system to determine which videos it should show to users.