Oracle has secured a last-minute deal with TikTok from Chinese firm ByteDance after the hugely popular video-sharing app TikTok rejected Microsoft who offered to buy the United States operations, as American President Donald Trump gave 15 September, 2020 deadline for the Chinese-owned app to sell or shut down in America.
Microsoft and Oracle led the race to buy TikTok from Chinese firm ByteDance, after Trump’s administration claimed TikTok and other Chinese apps are national security threats, while TikTok is hugely popular video sharing app which has been downloaded 2 billion times globally, where people make and upload 15 second clips.
According to Reuter reports on Sunday, “Oracle, which sells database technology and cloud systems to businesses, had won the bidding war, citing people familiar with the matter, while the company was seriously considering buying TikTok’s businesses in the US, Canada, Australia and New Zealand with investment firms, including General Atlantic and Sequoia Capital.
Meanwhile President Trump ordered TikTok’s owner ByteDance to sell its US business within 90 days or face being shut down.The forced sale of TikTok’s US business is part of a wider crackdown on Chinese technology firms in America.
President Trump also said apps such as TikTok, WeChat and equipment maker Huawei pose a national security threat because data collected about users can be shared with the Chinese government. The Chinese firms denied this claim.