TikTok’s US operations are likely to be run by Oracle, which is said to have edged Microsoft out of negotiations.
The deal, which hasn’t been confirmed yet, is believed to be a corporate restructuring arrangement with a stake in the new US business and not an outright sale – which was the deal proposed by Microsoft.
The news is being widely reported in the global media, although there is no official confirmation as yet and negotiations are believed to be ongoing.
It is thought that Oracle could take a stake in a new US business while also serving as TikTok’s US technology partner. It would also house the app and US data in its cloud servers.
TikTok is at the centre of a US government controversy, which has banned the video sharing app on the grounds of national security. This led to negotiations opening for a US partner to either buy or run TikTok’s US-based operations.
Chinese administrators have also imposed limits on technology imports, which is believed to have scuppered Microsoft’s bid for an outright purchase.
The Oracle deal, framed as a corporate restructuring, is thought to tick all the boxes for both sides: it would keep US data on local cloud servers, while the Chinese company would retain its artificial intelligence technology.