from the Why-should-nVidia-have-all-the-fun? dept.
TikTok will spin off into a separate company, partly owned by Oracle
Oracle plans take an ownership stake in a newly formed TikTok corporation as part of the recently announced deal, the Financial Times reports. The new arrangement will not cleave off TikTok regionally, but it will create a separate corporate entity for the app, in which Oracle will take a minority stake. Oracle will also ensure that data from American users is stored and processed in the United States, per the recommendations of the Committee on Foreign Investment in the United States (CFIUS).
TikTok was already headquartered in California, with nominal independence from ByteDance's China operation. The main change made by the deal is Oracle's minority stake in the company, the size of which is still unclear. But while Oracle's stake makes TikTok a more legally distinct corporation, it's still likely that the resulting company will rely on algorithms and applications developed and deployed from China.
TikTok has committed to increasing hiring within the US, and in an interview with CNBC, Treasury Secretary Steve Mnuchin described the deal as part of a broader effort to establish TikTok as a "US-headquartered company."
TikTok Could Be Spun Off Rather Than Sold to Oracle
The Financial Times reports that Treasury Secretary Steven Mnuchin said ByteDance is committing to "create TikTok Global as a U.S.-headquartered company," with other outlets saying the deal could be approved as soon as this evening.
See also:
TikTok taps Oracle as US partner
TikTok users rejoice over Oracle deal, but saga with Trump isn't over
Oracle's TikTok non-acquisition seeks Treasury, White House approval
'It's done' — Cramer says Trump administration will approve Oracle-TikTok deal Tuesday
TikTok rejects Microsoft bid at eleventh hour
Related Stories
US will ban WeChat and TikTok downloads on Sunday
The Commerce Department plans to restrict access to TikTok and WeChat on Sunday as the Trump administration's executive orders against the two apps are set to take effect.
The Department said Friday that as of Sunday, any moves to distribute or maintain WeChat or TikTok on an app store will be prohibited. Apple and Google didn't immediately respond to requests for comment.
While users who have already downloaded the apps may be able to continue using the software, the restrictions mean updated versions of the apps cannot be downloaded.
The restrictions targeting WeChat are more extensive. Beginning Sunday, it will be illegal to host or transfer internet traffic associated with WeChat, the Department said in a release. The same will be true for TikTok as of Nov. 12, it said. (The Trump administration is currently weighing a proposal involving ByteDance, TikTok's Chinese parent, and Oracle, designed to resolve the administration's national security concerns related to TikTok; the deadline for a deal is Nov. 12.)
(Score: 2, Redundant) by Bot on Wednesday September 16 2020, @05:34PM (1 child)
It's going to be called Tik-subscribe to know how the name ends.
Account abandoned.
(Score: 0) by Anonymous Coward on Wednesday September 16 2020, @06:12PM
MAGA!
(Score: 4, Insightful) by barbara hudson on Wednesday September 16 2020, @07:05PM (3 children)
Now Ellison can destroy stuff that doesn't matter for a change.
They should rename it Tik-Tok-BOOM!
SoylentNews is social media. Says so right in the slogan. Soylentnews is people, not tech.
(Score: 2) by TheGratefulNet on Wednesday September 16 2020, @08:49PM
see my comment (down a bit) - its not about ellison or any other US company.
[mongo]oracle is just pawn in game of life [/mongo]
"It is now safe to switch off your computer."
(Score: 0) by Anonymous Coward on Friday September 18 2020, @03:40AM (1 child)
Your comment lacks context. Please inform us what Leisure Oracle Suit Larry has destroyed that matters?
(Score: 2) by barbara hudson on Friday September 18 2020, @05:48PM
SoylentNews is social media. Says so right in the slogan. Soylentnews is people, not tech.
(Score: 1) by fustakrakich on Wednesday September 16 2020, @07:32PM (1 child)
Our data is in safe hands now!
La politica e i criminali sono la stessa cosa..
(Score: 3, Insightful) by Joe Desertrat on Wednesday September 16 2020, @10:09PM
Exactly. I don't and probably never will use TikTok, but I would worry less about the Chinese than I do Oracle or Microsoft.
(Score: 5, Insightful) by TheGratefulNet on Wednesday September 16 2020, @08:47PM (1 child)
it was never about china or the chinese app or even china spying on us.
the real issue?
lots of LOVELY LOVELY data that goes direct to servers that the US can't spy on, easily and directly.
they want that.
that's ALL this is about, dammit. once I read the 'data kept on US servers' it finally dawned on me.
end to end encryption and mitm detection - we need that, still - since our 'watchers' have too strong a taste for data that they really have no rights to.
sadly, they got that data, now, with this kind of deal. I don't care, personally; I don't use apps like that but I feel sad that its yet another data pipe that our Bad Guys now have access to, more easily.
to be used against us. always. and forever.
have a good day, everyone.
"It is now safe to switch off your computer."
(Score: 3, Disagree) by DeathMonkey on Wednesday September 16 2020, @10:54PM
For Trump it's about that failure of a rally that he blames Tik Tock Teenagers for.
But yeah, the rest of his cabinet is drooling at the prospect.
(Score: 2) by Freeman on Wednesday September 16 2020, @10:13PM (1 child)
So, in order to "protect ourselves" from a possible bad actor. We're letting the possible bad actor be represented by Oracle as a "trusted technology partner".
Since when was Oracle a "trusted technology partner"? "Trusted to Pocket Large Sums of Money" I can believe.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
(Score: 5, Informative) by jelizondo on Wednesday September 16 2020, @10:37PM
Larry has contributed 9.5 million [thehill.com] to Republican candidates and hosted a fundraiser for Trump, that is enoug to make you "trusted" by this Administration.
(Score: 2) by legont on Wednesday September 16 2020, @11:25PM
Don't give the headquarters address, please, I know it.
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
(Score: 2) by sjames on Thursday September 17 2020, @06:02PM
QUICK, everybody post video of crocodiles. Crocodiles on TicTok should scare Larry away.