on Monday confirmed that it is part of a proposal submitted by ByteDance to the Treasury Department in which the U.S. database software company will “serve as the trusted technology provider” for the China-based parent of the popular video service TikTok. Under the proposal, it does not appear that Oracle—or anyone else—will acquire TikTok’s U.S. business.
The Trump administration recently threatened to shut down TikTok’s U.S. operations unless they were acquired by an American buyer.
(ticker: MSFT), which had widely been considered the leading candidate to acquire TikTok’s U.S. unit, said Sunday that ByteDance had turned down its offer to buy TikTok’s U.S. operations. Instead, it appears ByteDance has come up with an alternative plan that will allow it to maintain control of the business while addressing U.S. security concerns.
In an interview with CNBC on Monday morning, Treasury Secretary Steven Mnuchin disclosed that the government received a proposal from ByteDance over the weekend with Oracle (ORCL) as its trusted technology partner, as well as a commitment to make the U.S. the headquarters for TikTok globally, with 20,000 new jobs. Mnuchin said the proposal would be reviewed this week by CFIUS, the Committee on Foreign Investment in the U.S., with a recommendation then made to the president. Mnuchin also said that, contrary to widespread reporting, the deadline set by the White House for a resolution of the issue was Sept. 20, not Sept. 15.
“Oracle confirms Secretary Mnuchin’s statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider,” the company said. “Oracle has a 40-year track record providing secure, highly performant technology solutions.”
A deal to provide cloud-based technology services would be a nice win for Oracle, which has been trying to catch up with leading cloud computing services providers like
com (AMZN), Microsoft, and
Trading in Oracle shared were halted this morning for news pending and has since resumed.
Oracle shares were up nearly 7%, to $60.82 this morning, while Microsoft was up about 2%, to $208.34.
Write to Eric J. Savitz at firstname.lastname@example.org