What's Happening with TikTok?
TikTok, the popular short-form video app, has been embroiled in controversy for quite some time over concerns about security and the app's potential ties to the Chinese government. To address these concerns, President Donald Trump signed an executive order on August 6, 2020, banning all U.S. transactions with TikTok's parent company, ByteDance, in 45 days, effectively forcing the company to sell its U.S. operations to an American company.
The Race to Buy TikTok
Following the executive order, several American companies, including Microsoft and Twitter, expressed interest in buying TikTok's U.S. operations. Microsoft was initially considered the frontrunner. However, on September 13, 2020, it was announced that Oracle had entered the race and had been chosen as TikTok's trusted technology partner, with a deal pending approval from the U.S. government.
The Deal with Oracle
The details of the deal with Oracle are still being finalized and await approval from the U.S. government, but the deal would essentially involve Oracle becoming TikTok's "trusted technology partner" for the app's U.S. operations. Under the deal, ByteDance would retain ownership of TikTok's code, but Oracle would take responsibility for storing and securing user data. This arrangement is meant to address concerns about Chinese government access to user data.
Additionally, TikTok Global, a new company owned primarily by American investors, including Oracle and Walmart, would be established to oversee TikTok's U.S. operations. The plan also includes the creation of 25,000 jobs in the U.S.
The Future of TikTok
While the details of the deal are still being ironed out, many have expressed concern that the deal with Oracle does not effectively address the security concerns that led to the executive order banning TikTok in the first place. Critics argue that the deal only satisfies President Trump's desire for an American company to own TikTok, but does little to address the underlying security concerns.
Moreover, the deal may not be enough to appease the Chinese government, which has accused the U.S. of bullying its companies and could still block the sale of TikTok's U.S. operations. It remains to be seen how these complicated issues will ultimately be resolved, and what the future holds for TikTok in the U.S.
Conclusion
TikTok is undoubtedly one of the most popular apps in the world, and its future has been uncertain for months. While it appears that a deal with Oracle is in the works, it remains to be seen whether the deal will satisfactorily address the app's security concerns and whether it will be approved by the U.S. government. The stakes are high, and the eyes of the world are on this deal, with many hoping that a resolution will be reached that will ensure the continued success of TikTok in the U.S. and beyond.
.jpg)
