Global  

Q&A: What does a deal between TikTok and Oracle mean?

SeattlePI.com Monday, 14 September 2020
HONG KONG (AP) — TikTok’s parent company ByteDance has chosen Oracle over Microsoft as a new American technology partner to help keep the popular video-sharing app operating in the U.S., according to a source familiar with the deal.

Microsoft, which had been vying for a deal, said in a statement dated Sept. 13 that its bid to acquire TikTok's U.S. operations was rejected. That came a week before the Sept. 20 deadline for ByteDance to sell TikTok to an American company or risk being banned in the U.S. over national security concerns.

Q. What is TikTok?

A. The app is a home for fun, goofy videos that are easy to make and to watch. That’s made it immensely popular, particularly with young people, and U.S. tech giants like Facebook and Snapchat see it as a competitive threat. TikTok says it has 100 million U.S. users and hundreds of millions globally. It has its own influencer culture, enabling people to make a living from posting videos on the service, and hosts ads from major U.S. companies.

ByteDance Ltd., a Chinese company, launched TikTok in 2017, then bought Musical.ly, a video service popular with teens in the U.S. and Europe, and combined the two. A twin service, Douyin, is available for Chinese users.

Q. What concerns U.S. officials about the app?

A. TikTok, like most other social networks, collects user data and moderates what’s posted. It grabs people’s locations and messages they send one another, for example, and tracks what people watch to discern what kinds of videos they like and how best to target ads to them.

Similar concerns apply to American social networks, but Chinese ownership adds an extra wrinkle because the Chinese government could order companies to help it gather intelligence. In TikTok's case, that's a hypothetical threat, Samm...
0
shares
ShareTweetSavePostSend
 
Video Credit: Cover Video STUDIO - Published
News video: TikTok Reaches Deal With Oracle Instead of Microsoft

TikTok Reaches Deal With Oracle Instead of Microsoft 01:05

According to NBC News, Oracle confirmed the new deal on Monday.

You Might Like


Related videos from verified sources

TikTok Ban Temporarily Halted as Ownership Details Get Sorted [Video]

TikTok Ban Temporarily Halted as Ownership Details Get Sorted

A federal judge has halted a ban on TikTok's U.S. operations until at least November 12, the final deadline set by the Trump administration. Oracle and TikTok's owner Bytedance are currently working..

Credit: Cheddar Inc.     Duration: 06:09Published
TikTok Ban Halted, TikTok Global to Overtake Operations [Video]

TikTok Ban Halted, TikTok Global to Overtake Operations

If the current plan moves forward, TikTok's new parent company, TikTok Global, is set to own 80 percent of the company as Oracle and Walmart take over U.S. operations. Cheddar's Michelle Castillo..

Credit: Cheddar Inc.     Duration: 05:02Published
TikTok Deal Huge For Walmart [Video]

TikTok Deal Huge For Walmart

TikTok Deal Huge For Walmart

Credit: Wochit Business     Duration: 00:25Published

Related news from verified sources

Q&A: What does a deal between TikTok and Oracle mean?

HONG KONG (AP) — TikTok’s parent company ByteDance has chosen Oracle over Microsoft as a new American technology partner to help keep the popular...
SeattlePI.com

ByteDance says it will own a majority of TikTok. Oracle says ByteDance will own 0%. WTF is this deal?

You know a deal is signed and going to close when the parties keep fact checking each other and no one can agree on what the deal actually says. We’ve been...
TechCrunch Also reported by •Business Insider

TikTok confirms proposed deal with Oracle, Walmart for US business

Donald Trump had earlier touted a “fantastic” deal between TikTok, Oracle and Walmart, saying he had given the deal his “blessing.”
Hindu Also reported by •Proactive InvestorsNewsyWorldNews

Tweets about this