Some huge news broke on Sunday. And not just that Tom Brady is washed up.
Oracle will become the trusted technology partner of TikTok, beating out Microsoft and Walmart’s bid for the social network’s US operations.
An underdog story
All signs (previously) pointed to Microsoft and Walmart being crowned king of the castle, taking ownership of TikTok’s US, New Zealand, Canadian, and Australian operations. That is until Sunday, when Microsoft announced via blog that its bid was rejected and Gen Z’s Vine won’t actually be sold at all.
Instead, Oracle will become TikTok’s “trusted technology partner” in the US (whatever the f*ck that actually means), and take a significant stake in ByteDance’s American operations just two days before President Trump’s September 15 deadline for a TikTok sale.
As part of this “restructuring” (don’t you dare call it an acquisition), ByteDance won’t actually sell its video-sharing algorithm or source code. This is due, in large part, to China’s new tech-export ruling, which bans certain tech from export without approval from China’s Ministry of Commerce.
Oracle and TikTok’s US operations will be able to develop a new algorithm in its place. That’s like getting a Big Mac without the special sauce.
So what does Oracle get?
The exact details are still being ironed out.
Odds are, Oracle would take a stake in the TikTok’s US operations business, which was previously valued near $25B, while also housing the video app’s data on Oracle’s cloud servers. This should help alleviate DC’s security concerns.
The bottom line…
Oracle, known best for its database software, Windows 98 looking ERP system, and cloud computing technology will now be the trusted tech partner of a flashy, new-age video app.
Will this go well? Maybe… but as Box CEO Aaron Levie put it…
“Sure, it seems unusual to have Oracle run TikTok. But who will have the last laugh when the TikTok influencers start recommending HR and Finance systems in all their videos.”