Secretary Mnuchin is on CNBC and referred to the ORCL bid as a proposal that needs to be reviewed, not a done deal.
Would just taking stake in TikTok/ByteDance and moving US TikTok data to ORCL servers now work? New rules of the game? WMT was going to partner with MSFT with some stake, so it is apparently approaching ORCL for a stake too. ORCL is closer to WH than MSFT. Assumption that ORCL got the deal secured may be premature.
Since last year, TikTok has been using Google Cloud servers. MSFT was probably going to shift that to its Azure cloud but it is out now. ORCL is a tiny player in cloud servers. Big cloud players in the US are AMZN, MSFT, GOOGL, IBM. https://www.gartner.com/en/newsroom/press-releases/2020-08-10-gartner-says-worldwide-iaas-public-clo...
It appears that ByteDance will not sell TikTok’s U.S. operations.
The tech upstart has decided not to sell or transfer the source code behind its popular video app.
Oracle was reportedly selected as a “trusted tech partner” instead.
This suggests that Oracle will provide cloud management for TikTok data.
Any deal will need to be approved by a governmental interagency group to ensure national security concerns are met. The U.S. government previously threatened to shut down TikTok on Sept. 20.
The clock is ticking...
So, if it is just a matter of cloud data management, what is so special about ORCL's tiny cloud business that is so fundamentally different than Google Cloud [currently used by TikTok], or MSFT Azure cloud [that would have been used if MSFT got the deal] or those by others?
"After more than six weeks, two White House executive orders, new Chinese regulations and multiple bidders, a deal for the social media app TikTok has boiled down to one main strategy: mitigation."
"The proposal is far from an outright sale of TikTok’s U.S. operations, as President Trump suggested in an Aug. 6 executive order. Instead, ByteDance designed a proposal to alleviate the pressure it was facing from China and the United States and to mollify all sides. Specifically, it structured the deal to satisfy some of Mr. Trump’s concerns while dodging new Chinese regulations that could allow Beijing to block an outright sale of TikTok, people with knowledge of the discussions said."
"The Trump administration said Friday it would bar the Chinese-owned mobile apps WeChat and TikTok from U.S. app stores as of midnight Sunday, a significant escalation in America’s tech fight with China that takes aim at two popular services used by more than 100 million people in the United States."
"Commerce Secretary Wilbur Ross, in an interview on Fox Business Network on Friday morning, said that the ban would initially have a much greater impact on WeChat. 'For all practical purposes it will be shut down in the U.S., but only in the U.S., as of midnight Monday,' Mr. Ross said."
"TikTok would also face some changes, but would still be allowed to function until Nov. 12, Mr. Ross said, at which point it would face a ban if there was no deal that satisfied the administration’s concerns."