TikTok, the social media platform that has gained so much impression in America politics for too long will work with Oracle in the hope of avoiding a US ban. In a statement, the social networking giant says “YouTube Is Bringing In A Short-form Video Format To Compete With TikTok.” Oracle says that it is the “trusted technology provider” in the deal, and it’s not clear how the ownership of TikTok will be reformed.
Treasury Secretary Steven Mnuchin spoke to CNBC, saying that the US will review the proposal this week to see if the proposal is secure. This includes commitments to secure American user data, the security of each user’s phone, and that the TikTok code itself is secure.
Oracle is not a consumer-facing company, instead of selling its database and cloud systems to large companies and organizations. It offers an infrastructure to a number of government bodies including the CIA, NSA, as well as Naval and Air Force intelligence. Oracle’s close relationship with the US, and its co-founder’s friendship with the president, will likely mean that there’s a possible chance of getting the approval.
CEO of TikTok, ByteDance spent heavily on advertising, and, all through the year of 2019, you couldn’t move for ads promoting TikTok as the hip new thing. Clearly, all of the funds were carefully spent since TikTok now has over 100 million users in the US, having grown 800 percent since 2018.
As the deadline for the ban approached, China began putting a harder line in its negotiations, saying that it may not allow any US company to buy TikTok. Reports claimed that China would rather shut the app down than appear weak, and wanted to protect the company’s famous algorithm that has interested so many buyers. After Microsoft and TikTok refused to come to an agreement, Oracle won the bidding.