The U.S. Government is reviewing Oracle’s “trusted tech partnership” with controversial and Chinese-owned short video app TikTok, and could render a decision on whether to approve the deal as early as Tuesday evening or early Wednesday, FOX Business has learned.
Shares of Oracle are hovering near a record high and have gained 15% this year.
MNUCHIN: ORACLE’S TIKTOK BID PROMISES US HEADQUARTERS, 20,000 JOBS
The Treasury Department’s Committee On Foreign Investment in the U.S., also known as CFIUS, is meeting with officials from TikTok’s parent, the Beijing-based ByteDance this afternoon about whether the deal with Oracle meets national security standards, according to people with direct knowledge of the matter.
Tiktok, an app which is popular with young people and media influencers, took on geopolitical importance when President Trump in the summer said that its user data is being siphoned by the Chinese government for surveillance purposes and he would ban the app in the U.S. without a sale to an American company.
For nearly six weeks, Microsoft and Oracle proposed different approaches for that sale with the Chinese government, further complicating matters with newly announced controls on data sharing with foreign companies.
With that, Microsoft’s plan to buy TikTok and completely secure it in its cloud fell through and Oracle came up with a plan in which it essentially created a joint venture with a group of U.S. investors to license Tiktok’s app from its Chinese owners, while Bytedance maintains ownership of the app’s all-important algorithm and the platform…Read more>>