ByTdance, the parent company of Tikotok, has chosen Oracle as a new US technology partner over Microsoft to help keep popular video-sharing apps operational in the US, according to a person familiar with the deal.
Microsoft, Who was dying for a deal, said in a statement on Sunday that his bid to acquire Tiktok’s US operations had been rejected. Came a week before the September 20 deadline ByteDance Sell TIC Toc A US company or national security concerns are undergoing a risk ban in the US.
Q. What is TikTok?
a. The app is a home for fun, mindless videos that are easy to create and view. It is quite popular, especially with young people, and is preferred by US tech giants. Facebook And Snapchat Consider it as a competitive threat. TikTok says that it has 100 million American users and millions globally. It has its own influential culture, enabling people to post videos on the service to host advertisements for American companies.
Bytdance, a Chinese company, launched TikTok in 2017, then bought the musical. A video, a video service popular with teenagers in the US and Europe, and Merged both. A twin service, Douyin, Is available for Chinese users.
Q. What do US officials worry about the app?
A Tiktok, like most other social networks, collects user data and moderates what is posted. It captures people’s locations and messages that they send to each other, for example, and it tracks how people like to see what types of videos they like and how much they need to target ads that’s good.
A similar concern applies to American social networks, but Chinese ownership adds an additional wrinkle because the Chinese government can order companies to help them gather intelligence. In Ticketock’s case, this is a hypothetical threat, said Sam Sachs, a researcher at Yale Law School’s Paul Tsai China Center.
TikTok states that it does not store US user data in China and it will not provide user data to the government. But experts say that if the Chinese government needs information, it will be found.
There is also concern over a video tweetcock criticizing China, which Tiktok denies, or promotes. Some critics say the company is violating children’s privacy laws.
US gives parent company BiteDance a 20 September deadline Complete a sale TikTok’s U.S. assets to an American company, or risk being banned in the country.
Q: Is Oracle buying Tiktok, and what assets are included?
Oracle Was among the pool of bidders including Microsoft and Walmart, To buy TikTok’s American works. Microsoft said on Sunday that Bytdance would not sell TikTok’s US operations to the company. A person familiar with the deal, who was not authorized to speak publicly, said Oracle would become the winner, but Tiktok US is unlikely to have a one-time sale.
However, it is unclear at this point what assets Oracle will buy.
Tiktok has gained worldwide popularity for part of its content-recommendation algorithm, which suggests videos to users based on their viewing history. But the Hong Kong newspaper South China Morning Post on Sunday quoted an unnamed person as saying, ByteDance will not sell algorithms. China has Tighten your controls And companies need to obtain permission to export such technologies.
Tiffany Li, a visiting professor at Boston University’s School of Law, said, “China’s government has speculated that it could block exports of Tickcock’s AI system, leading to direct sales.” “One of Tiktok’s competitive advantages is its AI-supported video recommendation system.”
Question: What is Oracle’s relationship to TikTok?
Oracle is known for providing enterprise software including cloud computing services. It can therefore provide cloud services such as computing services for TicketTalk’s data in the US, or computing services for apps.
Daniel Ives, Strecker Back and Ahmed Khalil of Valesh Securities said, “Oracle may be a technology partner, but the sales or division of US operations is the focus for Tiktok. ”
Question: Will the Trump administration go for the arrangement, based on what we know so far?
A: A TikTok-Oracle deal must be approved by the Committee on Foreign Investment in the United States (CFIUS), Which may have national security implications.
CFIUS defeated first Chinese PC manufacturer Of lenovo buying of IBM’s Computer server business in 2014, There was not a significant security risk after the deal ended. Also cleaned Softbank’s Acquisition of Sprint in 2013, But only after SoftBank agreed not to use Huawei And ZTE Equipment in America.
If Oracle and TikTok can show that they can secure user data in the US, then CFIUS and the Trump administration can accept this arrangement.
A Chinese Foreign Ministry official said on Monday that it had no comment on Oracle, but described the situation as a “general government-run transaction”.
Question: How closely does Oracle deal with the administration in this deal?
A: Trump did not say whether he likes Oracle or Microsoft, but he describes Oracle as “a great company” that can handle sales.
Oracle co-founder Larry Ellison is unusual among tech executives for his public support of President Donald Trump.
“Oracle’s connections with the Trump administration are interesting. It is possible that they may be able to negotiate an outcome that allows Tiktok to continue operating in the US without a full sale, with ByteDans still maintaining something, ”said Lee of Boston University .
Q: What could be the deal for users?
If it is finalized and approved by CFIUS, TikTok will be allowed to continue operating in the US.
“Trump’s executive order effectively banned Tickcock’s American business, which would probably no longer apply, as Tickcock would no longer be owned by Byteens,” Lee said.
“The executive order can be canceled or amended at any time,” she said.
However, Oracle’s plan is unclear.
“I doubt we’ll see the creativity and consumer-friendliness we might expect from a different owner,” Lee said.
Paul Haswell, partner of law firm Pinsent Mason, expects that Oracle will strive to retain Tickcock’s users.
“If the app changes or the user experience changes, users can abandon the platform which completely reduces the value of the acquisition of Tickcock and Oracle,” he said.
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