Chinese company ByteDance has dropped Microsoft’s bid to acquire TikTok's US business acquisition. This makes way for Database software and technology company, Oracle, as the preferred tech partner for ByteDance’s TikTok US business.
What’s in it for Oracle? If the Oracle-TikTok deal is finalised, the former will be ByteDance’s technology partner and will assume management of TikTok’s US user data. The Chinese app has an active user base of over 80 million and is growing rapidly.
TikTok is among the most popular apps in the US, especially among teenagers. The acquisition will help Oracle gain valuable data on various trends across the user demographic.
This data can help Oracle put its foot into new industries. For example, the company could enter the social media space with the help of TikTok, thus opening doors to more data.
The deal will be only successful if US President Donald Trump approves the proposal. Trump, in his executive order, had stated that TikTok needs to be acquired by an American company to run its business in the US and that all the data should be stored within the country.
Earlier, Microsoft showed interest in buying TikTok’s US business. However, the latest development from Microsoft states that ByteDance has declined its offer to acquire TikTok’s business in the US.
It remains unclear if Oracle would have a majority stake in TikTok and whether the software giant would acquire TikTok’s business outside of the US.