Chinese State Media Explains How Oracle Is A “Technology Partner” For TikTok

Last night I posted a story on Oracle being chosen as a “technology partner” of TikTok after rejecting Microsoft’s bid to buy the social media company that is a target of US President Trump due to being Chinese owned. In that story, I said this:

Yeah, what the hell does that mean? If that means if Oracle won, it doesn’t sound like it bought TikTok. But I am guessing that the association with Oracle founder Larry Ellison and Trump factored into this. The world will be waiting for details on this to see if this is workable for the Chinese and Trump.

With tomorrow being the deadline for TikTok to be sold or be forced to shut down, assuming that a lawsuit prevents the latter from happening, Chinese State Media is now saying a sale to US interests isn’t going to happen. And it sheds light on Oracle being a “technology partner” of TikTok. Reuters has the details:

ByteDance will not sell TikTok’s U.S. operations to Oracle Corp or Microsoft Corp and will not give the source code for the video platform to any U.S. buyers, China’s state-run English television channel CGTN reported on Monday, citing sources.

People familiar with the matter told Reuters that ByteDance abandoned the sale of TikTok in the United States and decided to pursue a partnership with Oracle in hopes of avoiding a U.S. ban while appeasing the Chinese government.

Well good luck with that as I don’t see that stopping Trump who is down in the polls from banning the company. That’s because he needs a win and banning TikTok to show he’s tough on China would qualify as a “win”. I also don’t see it making the Chinese government happy as I can see a scenario where they push back on any association with a US company. Especially one run by Larry Ellison who is a friend of Trump. And one who’s current CEO is also a friend of Trump.

That will make tomorrow very interesting. I guess I will have something else to do besides covering the Apple Event tomorrow.

UPDATE: Bloomberg citing sources claims that the terms being discussed between ByteDance and Oracle were “still evolving,” but that one of the options being explored could see Oracle take a stake in a newly formed U.S. business while serving as TikTok’s U.S. technology partner and housing the video app’s data in Oracle’s cloud servers.

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