September 21, 2020

ByteDance announces a cooperation agreement with Oracle

2 min read

Yesterday, Microsoft issued an official statement stating that Bytedance had rejected the offer provided by Microsoft, and since then Microsoft’s proposal to acquire TikTok business has ended.

After Microsoft withdraws, the most promising acquisition is Oracle, but according to the latest news from CNN, ByteDance is not planning to sell Tiktok’s business in the US.

Since ByteDance is not going to sell, can ByteDance bypass the ban signed by US President Trump? In fact, Bytedance is still pulling on Oracle to prepare for another acquisition and operation.

According to the report, ByteDance did not sell Tiktok in the United States to Oracle but chose Oracle as its technology partner and cloud service provider.

TikTok Oracle

That is to say, the data related to Tiktok in the United States will be stored on the Oracle cloud platform. At the same time, ByteDance will also adjust the structure to divest related assets as required.

The above scheme ByteDance has been submitted to the U.S. Department of the Treasury for approval in conjunction with Oracle, and the U.S. Department of the Treasury has stated that it will carefully evaluate the proposal.

In fact, the core content of the program is that the data of American users is stored in the United States. Tiktok was previously suspected of stealing privacy.

Bytedance is also very optimistic about the project. If Trump hadn’t signed the order, Bytedance was not ready to sell at all.

However, for various reasons, ByteDance cannot sell the core secrets and algorithms, and stripping of technical secrets and algorithms will have a significant impact on the product.

It is precise because ByteDance chose Oracle as its cloud platform provider. After all, data is stored in the United States, confidential and algorithmic content will not be sold.

At least the company still has these technical secrets and algorithms. If it can be approved by the US government, this situation can be considered TikTok’s best outcome.