Oracle has won its bid for TikTok’s U.S. operations, though the deal will not be an outright purchase. Instead, Oracle will become a “trusted technology provider” for TikTok owner ByteDance. The companies must now wait for approval from the White House and the Committee on Foreign Investment before completing the deal.
The review is scheduled for this week. “I will just say from our standpoint, we’ll need to make sure that the code is, one, secure, Americans’ data is secure, that the phones are secure and we’ll be looking to have discussions with Oracle over the next few days with our technical teams,” said Treasury Secretary Steven Mnuchin in an interview with CNBC.
TikTok owner ByteDance rejected Microsoft’s bid, which would have included a partnership with Walmart. “We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” said Microsoft in a blog post. “To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas.”