Slash Boxes

SoylentNews is people

Submission Preview

Link to Story

Approval for Oracle-TikTok "Trusted Technology Provider" Deal Imminent

Accepted submission by takyon at 2020-09-15 23:07:13

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: 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 []

Original Submission