Highlights:
- Oracle in talks with TikTok to take over its US operations
- Earlier both Microsoft and Twitter were also reported to have had a discussion with TikTok
- Trump admin has given TikTok 90 days to sell off its US business
ByteDance, the parent organization of TikTok seems to have too many takes in the United States of America. After Twitter and Microsoft, now another US-based tech giant, Oracle, has gotten into talks with the China-based firm to acquire its operations in the US for TikTok.
President of the US, Donald Trump has given an ultimatum to TikTok to sell off its US business in 90 days else he will shut down the application in the country.
Going by the report of Financial Times, Oracle has been considering and has been in talks with ByteDance regarding taking over TikTok’s operations in the US. According to the reports, Oracle is seriously considering taking over TikTok’s US, Canada, Australia, and New Zealand operations.
The report has claimed that Oracle already owns a stake in ByteDance.
Before this development, Microsoft, in a statement, announced that they were in talks with ByteDance and the US Government to take over the US operations of TikTok. However, the report from Financial Times said that Microsoft is not just going for the US operations rather will be taking over the global operations of the short video platform.
However, Microsoft is yet to issue an official statement about its plans to acquire the global business of the ByteDance-owned short video platform.
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Now, apart from these two giants, Twitter, the US-based micro-blogging firm was also in talks with ByteDance over a potential deal for TikTok’s US operations. However, experts have stated that it would be next to impossible for Twitter to acquire a company such as TikTok in 45 days as it does not seem to have the financial backing for the transaction.
A report stated that one of Twitter’s shareholders, a private equity firm named Silver Lake, was interested in funding this deal.
The President of the US, Donald Trump signed an executive order earlier which barred transactions with ByteDance.
The executive order read, “The spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China continues to threaten the national security, foreign policy, and economy of the United States,”
It also read, “At this time, action must be taken to address the threat posed by one mobile application, in particular, TikTok.”
TikTok never expected that Trump would take such a drastic step in such a short time. Responding to the executive order from Trump, TikTok said, “We are shocked by the recent Executive Order, which was issued without any due process. For nearly a year, we have sought to engage with the US government in good faith to provide a constructive solution to the concerns that have been expressed.”
In the statement, TikTok also said, “What we encountered instead was that the Administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses.”
