On Jan 26, Sources reported that Oracle (ORCL, Financial) and Microsoft (MSFT, Financial) have joined forces with investors to secure control of TikTok's worldwide operations. The new business structure will enable ByteDance to control a minority stake in TikTok as their child company. Through its agreement with Oracle, the parent company retained lower-level control of TikTok platform infrastructure, including management of algorithms and data systems, while Oracle handled software maintenance to reduce Chinese oversight.
The server networks which support TikTok operate through Oracle's existing infrastructure responsibilities. The deal's success would grant Oracle access to perform direct oversight of TikTok's data processing and content control methods while the administration tackles data protection issues linked to Chinese ownership.
Microsoft participates in ongoing discussions following its failed 2020 attempt to buy TikTok's partnership with Oracle and Walmart. MethodManager has mutually excluded Walmart from its current dealmaking discussions on TikTok assortment values.
The negotiations occur at a time when TikTok continues to face meaningful questions about its data handling methods. The US Government has identified major risks that ByteDance may use to share TikTok user data with the Chinese federal authorities. TikTok continues to encounter worldwide difficulties, including an entire Indian market ban and privacy protection suits targeting children.
The negotiations occur during a 75-day temporary period granted in an executive order that protects ByteDance from any TikTok divestiture-related enforcement actions coordinated by the Trump administration.
The ongoing discussions about one of the world's favourite social media applications show rising pressure to find solutions for its regulatory problems despite a nebulous end result.
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