Washington, United States:
US officials were to consider bidding by tech giant Oracle, as it became a US partner for the Chinese-owned Tiktok video app after being designated as a national security risk.
Treasury Secretary Steven Menucchin on Monday confirmed Tiktok’s proposal concerning US operations after his parent company ByteDance rejected an offer from Microsoft.
Tickcock said in a statement that “we have submitted a proposal to the Treasury Department, which we believe will resolve the administration’s security concerns” and allow the company to continue to be used by 100 million people in the US.
But key details about the deal were unclear and it was unclear whether the venture would pass with Washington regulators.
“We received an offer over the weekend that includes Oracle as a trusted technology partner,” Menuchin said on CNN, noting that the bid would be controlled by a government panel that reviews foreign transactions for national security concerns Does.
“We need to make sure the code is, one, safe, the data of Americans is safe, the phones are safe, and we will discuss with our tech teams with Oracle over the next few days.”
Confirming its submission, Oracle said, the company “is part of a proposal by ByteDance to the Treasury Department over the weekend in which Oracle will operate as a trusted technology provider.”
President Donald Trump effectively ordered the sale of the Chinese company’s US operations until September 20, after which the app closed.
Chinese state media outlets CGTN and China News Service reported on Monday that ByteDance will not sell TicketLock to Oracle, while The Wall Street Journal said the transaction is being structured as a partnership and is perhaps an accurate sale. Will not happen. All three outlets cited unnamed sources.
Still a threat
Professor Carl Tobias of the Richmond School of Law said that Oracle’s description of itself under the enterprise was vague and cannot accept national security concerns.
“It is unclear what Oracle means that it will operate as’ Ticketok’s trusted technology provider.” This idea is important because a major reason for Trump’s executive orders was the threat to national security from Tiktok, ”said Tobias.
“As much is done to clarify what the deal outlines and how they will work in practice, many observers and I wonder if the deal will be enough to stop an app ban in the US or No.”
Short, bizarre videos made on the cell phones of users of the TikTok brand have become popular in the United States and beyond.
But Trump claims that Tiktok could be used by China to track the location of federal employees, create dossiers aimed at blackmail, and corporate espionage, which has sparked a diplomatic storm between Washington and Beijing.
Tiktok has dismissed the charges and sued in the case, stating that the US order was an abuse of its International Emergency Economic Powers Act because the forum is “not an unusual and extraordinary threat.”
Last month, China’s Ministry of Commerce published new rules potentially, making it more difficult for ByteDans to sell TickTalk to an American entity that is on a list of technologies banned for export as “civilian use. “Done by adding.
Bytdans vowed to “strictly follow” the new export regulations.
Microsoft bid nixed
Downloaded 175 million times in the United States, TikTok is used by one billion people worldwide. It has repeatedly denied sharing data with Beijing.
Microsoft indicated in early August that it was interested in acquiring TikTok’s American works, but announced on Sunday that the bid had been rejected.
Vesush analyst Daniel Ives said in a note, “We believe that Microsoft will only buy Tiktok with its core algorithm, which the Chinese government and ByteDance were not willing to confront.”
“Given the need to get a green light from Beijing after a change in export rules a few weeks ago, Tiktok’s days in the US are now likely to be closed with the next step.”
S&P warned on Monday that the transaction for Tiktok could be the result of a decline in Oracle’s credit rating, depending on whether the company had to incur significant debt for the transaction.
“A deal in which Oracle is a technology partner rather than a wholly owned one could lower the price,” S&P said. “And if Oracle has co-bidders, it may reduce the financial impact.”
Shares of Oracle were halted shortly after the open due to pending news on the company but resumed trading later in the day. Shares of Oracle closed down 4.3 percent at $ 59.46.
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)