Bytedance selected Oracle as data storage partner for TikTok operations in US

Chinese tech company Bytedance has made a deal with software company Oracle about the activities of video app TikTok in the United States, says unidentified source familiar with the issue. Oracle will become Bytedance’s technology partner and will manage TikTok’s user data in the US, says the source.

The deal will not take the form of a sale, but a restructuring, according to the source. It is unclear how many of TikTok’s activities remain in the hands of Bytedance and its investors.

The Chinese state channel CGTN reports that Bytedance will not sell its operations in the US to Microsoft or Oracle. Nor is the source code of TikTok transferred to Oracle or any other US buyer. Without the algorithm, a takeover of TikTok is a lot less interesting because it determines which videos users will see.

Bytedance is negotiating with various parties to get TikTok off the hook since US president Donald Trump threatened to ban the video app last month if it was not sold. The Chinese company needs approval from the governments of the United States and China for the deal.

ByteDance and Oracle did not respond immediately to requests for comments. The White House refused to respond.

Microsoft announced earlier on Sunday (local time) that the choice had not fallen on the tech company.

“We are convinced that our proposal would have been good for TikTok’s users while protecting national security interests,” said Microsoft in a statement.

Supermarket Walmart that had joined Microsoft’s bid said on Sunday that it remains interested in a stake in TikTok. The company claims to have further discussions with the leadership of Bytedance and other interested parties. “We know that any deal approved must take away all the concerns that live on regulation and national security,” said Walmart.

Orcacle is also under the control of co-founder Larry Ellison. He is one of the few major businessmen from techhub Silicon Valley who openly supports Trump. The billionaire has even organised a fundraiser for the American president from his estate before.