and will “serve as the trusted technology provider” for the app, TikTok.
“Oracle confirms (Treasury) Secretary Steven 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 in a statement. This win bumped up Oracle’s stock 6.53%, trading at US$60.72 a share.
This deal came to an end only four days prior to the deadline which was put in place by President Trump based on a national security concern.
The US government will be reviewing the deal this week, Mnuchin said. “I will just say, from our standpoint, we’ll need to make sure that the code is…secure, Americans’ data is secure, that the phones are secure, and we’ll be looking to have discussions with Oracle over the next few days with our technical teams,” he added.
ByteDance is hopeful that this deal would be a partnership rather than an outright sale. Oracle would be the Beijing-based company’s technology partner and will take over TikTok’s management of US users data. Oracle is also in talks about having a stake in the US operations of the app.
General Atlantic and Sequoia, which are ByteDance investors would also get a small portion of the stakes, according to Reuters.
This deal would add videoconferencing to Oracle’s portfolio, as it also has Zoom using its cloud services for its platform.